On Sept. 1, 2006, Standard&Poor's Ratings Services raised its long-term corporate credit rating on Aquila Inc. to 'B' from 'B-'. The rating remains on CreditWatch with positive implications. At the same time, Standard&Poor's raised its short-term corporate credit rating to 'B-2' from 'B-3' and removed the rating from CreditWatch with positive implications. Kansas City, Mo.-based Aquila is primarily an integrated electric and natural gas utility. The company had approximately $1.6 billion in total debt outstanding at the end of June 2006. The upgrade reflects the company's improved business risk profile, significant debt reduction and plans for further deleveraging, expected cash-flow improvement, and lower ongoing working capital requirements. The continued CreditWatch listing for the long-term ratings on
