On April 8, 2004, Standard&Poor's Rating Services lowered its corporate credit rating on Aquila Inc. to 'B-' from 'B'. The outlook is negative. The rating action reflects continued uncertainty regarding the company's ability to restructure its gas prepay contracts and the expectation that credit measures will remain pressured despite management's efforts to stem its deteriorating credit profile. Kansas City, Mo.-based energy provider Aquila has approximately $2.7 billion of outstanding debt. The ratings on the company reflect marginal credit measures, uncertainty associated with plans to restructure its gas prepay and tolling contracts, and a burdensome debt level, not quite mitigated by management's efforts to refocus on its traditional regulated utility business. Due to weak cash flow generation from operations,
