The ratings on electric utility FPL Group Capital Inc. reflect the consolidated credit profile of FPL Group Inc. In addition, all of FPL Group Capital's debt and obligations are guaranteed by FPL Group. The ratings for FPL Group and its affiliates reflect a regulated electric utility in the expanding Florida markets which generates a relatively stable revenue stream, increased business risk because of overcapacity in several markets which weakens the financial performance of its unregulated power generation portfolio, and adequate credit protection measures. Execution of the company's 2003 financial plan contributed to a significant reduction in short-term debt balances to about $500 million by year-end 2003 from $2.3 billion at year-end 2002, increasing liquidity. Standard&Poor's views the company's
