The ratings on diversified energy company Aquila Inc. remain on CreditWatch with positive implications reflecting the company's announcement that it is selling four utility businesses for a total of $897 million, plus working capital and subject to net plant adjustments. If approved by the various regulatory commissions (expected over the next nine months), the sales could result in meaningful debt reduction--potentially 30% of the company's total adjusted debt. Aquila owns both regulated and nonregulated businesses. The company operates regulated electric and natural gas distribution networks in seven Midcontinent states. Following the completion of its utility sales, Aquila will operate in only five states. The company has nonregulated electric generation assets in Illinois and Mississippi and also delivers gas and electricity
