Standard&Poor's Ratings Services removed from CreditWatch with negative implications and affirmed its ratings on Tucson Electric Power Co. (TEP). The ratings on Tucson Electric Power Co., a wholly owned subsidiary of UniSource Energy Corp. reflect the highly leveraged financial profile and its moderate risk business profile of this regulated, vertically integrated electric utility. A year-long effort by a private equity group led by Kohlberg Kravis Roberts&Co.(KKR) to acquire UniSource ended unsuccessfully in December 2004, after regulators rejected the plan. This rejection makes it unlikely that another suitor will attempt to acquire UniSource in the near-term. TEP's business profile is a '6' on Standard&Poor's 10-point scale, where '1' is the strongest. At this level, TEP's
