LONDON (Standard&Poor's) May 2, 2002--Standard&Poor's said it assigned its double-'A'-minus senior unsecured long-term rating to Austria-based utility KELAG AG's proposed €150 million bond issue. The bond matures in 2009 and pays a coupon of 5.5%. "Proceeds from the issue will be predominantly used to refinance an outstanding Swiss Franc bond and short and medium-term bank lines," said Standard&Poor's Infrastructure Finance credit analyst Ralf Etzelmueller. "The remainder will be used to refinance Kelag's acquisition of a 35% stake in the Austrian municipal utility of Kapfenberg," continued Mr. Etzelmueller. Most of KELAG's debt is now long term and the company's leverage is high for the rating category. This is mitigated by the utility's strong operating performance,
