The ratings on Aquila Inc. reflect the analysis of the company's restructuring plan, financial condition, and available liquidity to meet near-term obligations. Aquila's restructuring plan is dependent on continued asset sales, and Standard&Poor's is concerned with the heavy execution risk involved with the company's asset-sales strategy. Weak market conditions may lead to increased execution risk for future asset sales, as evidenced by the delay in the sale of Avon Energy Partners Holdings. Due to weak cash flow generation from operations, asset sales will be necessary for Aquila to reduce its debt levels and shore up its balance sheet. However, cash flow generation relative to total debt is likely to remain weak and not exceed 15% in the near
