FPL Group's credit quality is supported by the activities of its operating utility, Florida Power&Light Co., and its growing portfolio of higher-risk nonregulated investments, principally in independent power projects. Current ratings for FPL Group and its affiliates incorporate increasing business risk for the consolidated enterprise attributable to the growing nonregulated independent power producer (IPP) portfolio, regulatory challenges in Florida, an aggressive financing plan and declining credit protection measures. The potential for ratings stability at current levels is predicated on favorable resolution of regulatory issues at Florida Power&Light, adequate risk mitigation for the IPP activities, and sufficient consolidated cash flow accretion consistent with the financial targets of the single-'A' rating category. FPL Group's portfolio of nonregulated electric
