The ratings on diversified energy company Aquila Inc. remain on CreditWatch with positive implications as the company pursues its plan to sell four utility businesses for about $900 million. One sale for $270 million closed in April 2006. Together 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 unregulated electric generation assets in Illinois and Mississippi and also delivers gas and electricity under contracted and hedged legacy trading arrangements. Standard&Poor's Ratings Services expects improvement
