On March 20, 2008, Standard&Poor's Ratings Services raised its long-term corporate credit rating on integrated electric and natural gas utility Aquila Inc. to 'BB-' from 'B+'. The company remains on CreditWatch with positive implications. The upgrade reflects Aquila's strengthening credit profile due to improving financial measures from asset sales, deleveraging, and increasing cash flow. As mostly a regulated electric and natural gas utility, cash flow should begin to be stronger and more stable. In addition, the ability of the company's Missouri utility to recover fuel and purchased power costs through a fuel-adjustment clause enhances cash flow stability during times of rising purchased power, coal, and natural gas prices. The Colorado utility also has an adjustment mechanism through which
