LONDON (Standard&Poor's CreditWire) Sept. 14, 1999--Standard&Poor's today assigned its double-'A'-minus long-term issuer credit ratings to KELAG AG. The outlook is stable. The ratings reflect KELAG's low business risks from its strong market position as the public supply utility for the Austrian province of Carinthia--with favorable regulation and operations--and a robust financial profile. These strengths are partly offset by Carinthia's patchy growth record, KELAG's small size, and some uncertainty about the ultimate impact of electricity market reform. KELAG, 64% owned by Carinthia and 35% owned by Verbundgesellschaft (double-'A'-minus/Stable/--), is a vertically integrated utility, with regional monopolies in the distribution and supply of electricity, gas, and heat. Electricity accounts for about 90% of sales--with the remainder coming from
