NEW YORK (Standard&Poor's CreditWire) March 12, 1999--Standard&Poor's today affirmed its ratings on FPL Group Inc. and its subsidiaries (see list below). The outlooks for FPL Group and Florida Power&Light Co. were revised to negative from stable. The outlook revision reflects the changing landscape of Florida regulation, as embodied in the recent Public Service Commission (PSC) decision that approved Florida's first merchant power plant. The potential for competition in its market and less supportive regulatory actions would be detrimental to Florida Power&Light's business profile and risk-adjusted credit protection measures. After months of contentious wrangling, the utility did enter into a rate settlement, which, if approved by the PSC, would reduce Florida Power&
