The ratings on FPL Group Inc. and its affiliates Florida Power&Light Co. and FPL Group Capital Inc. remain on CreditWatch with negative implications, after the announcement that the firm's proposed merger with Entergy Inc. was terminated. The maintaining of the CreditWatch listing reflects a pending review of the announcement and FPL's intention to aggressively add 5,000 MW to its independent power producer (IPP) portfolio by 2003. FPL Group's credit quality is supported by the buoyant cash flow and the strong business profile of its operating utility, Florida Power&Light Co., tempered by the growing portfolio of higher-risk nonregulated investments, principally in independent power projects (IPP) and fiber optics. The portfolio of nonregulated electric power generation holdings is
