On Feb. 7, 2006, Standard&Poor's Ratings Services placed its 'B-2' short-term corporate credit rating on Aquila Inc. (B/Watch Pos/B-2) on CreditWatch with positive implications. The 'B' long-term corporate credit rating on the company was already on CreditWatch with positive implications. Kansas City, Mo-based Aquila is primarily an integrated electric and natural gas utility. As of Sept. 30, 2006, the company had roughly $1.4 billion in total debt outstanding. The rating action follows the announcement that Great Plains Energy Inc. (BBB/Watch Neg/--) will acquire 100% of Aquila's common stock. Great Plains is expected to pay Aquila shareholders $1.7 billion in cash (40%) and stock (60%). Shortly after the merger's close, Great Plains will tender roughly 40% of assumed debt.
