On Feb 25, 2003, Standard&Poor's Rating Services lowered its corporate credit and senior unsecured debt rating on electricity and natural gas distributor Aquila Inc. to 'B+' from 'BB' and placed its ratings on CreditWatch with negative implications. The rating action reflects concerns resulting from uncertainty surrounding the extension of its bank credit facility and waiver, which expire on April 12, 2003, reliance on asset sales to reduce debt levels, and weak cash flows from non-regulated operations. Kansas City, Mo.- based Aquila has about $3 billion of outstanding debt. As the date for extending or replacing its maturing credit facility nears, Aquila has still not completed its negotiations with the lenders. In particular the renegotiated terms of the credit
