On July 21, 2004, Standard&Poor's Ratings Services said that its 'CCC+' corporate credit rating on Aquila Inc. remains on CreditWatch, but that it is revising the CreditWatch implications to developing from negative. The rating action follows Aquila's announcement that it has initiated the termination process of three prepaid natural gas supply contracts in its unregulated business portfolio. The CreditWatch developing listing indicates that ratings may be raised, lowered, or affirmed. Kansas City, Mo.-based energy provider Aquila has about $2.7 billion of debt. The revision of the CreditWatch listing to developing from negative reflects the potential for a ratings upgrade, depending on the success of Aquila's efforts to settle disputes related to surety bonds with Chubb Corp. and St.
