Summary: Kansas Gas&Electric Co.

Fully regulated utility; Steady economic growth in the service territory; and Improved cost recovery through the regulatory process. Steady utility cash flow; Capital spending stabilizes after environmental spending at the La Cygne power plant; Discretionary cash flow to remain negative; and Continuing commitment to credit quality and maintenance of balanced capital structure. S&P Global Ratings' positive outlook on Westar and Kansas Gas&Electric (KGE) reflects our base-case scenario following the announced merger with Great Plains Energy and that the merged entity's regulated utility operations will continue to generate sufficient cash flow to consistently achieve financial measures that support funds from operations (FFO) to debt in the 17%-19% range from 2019 through 2021. This range of FFO to debt places

...Outlook: Positive S&P Global Ratings' positive outlook on Westar and Kansas Gas & Electric (KGE) reflects our base-case scenario following the announced merger with Great Plains Energy and that the merged entity's regulated utility operations will continue to generate sufficient cash flow to consistently achieve financial measures that support funds from operations (FFO) to debt in the 17%-19% range from 2019 through 2021. This range of FFO to debt places the company comfortably in the midpoint of our significant financial risk profile category. The positive outlook also reflects the possibility of an upgrade if the combined companies demonstrate a strengthened business risk profile along with financial measures that remain consistent after the merger closes....

Summary