On June 23, 2004, Standard&Poor's Ratings Services lowered its corporate credit rating on Aquila Inc. to 'CCC+' from 'B-' following a preliminary injunction issued by a U.S. District Court in Kansas City, Mo. that prevents Aquila from using $504 million in proceeds from the sale of its Canadian utilities. The ratings were also placed on CreditWatch with negative implications, pending the outcome of a hearing to consider whether the injunction should be permanent. No date has been set for that hearing. Kansas City, Mo.-based energy provider Aquila has approximately $2.7 billion of outstanding debt. The rating action reflects Standard&Poor's concern that the injunction significantly limits Aquila's liquidity and hampers management's efforts to stabilize its vulnerable credit
