SAN FRANCISCO (Standard&Poor's) Jan. 6, 2005--Standard&Poor's Ratings Services removed from CreditWatch with negative implications and affirmed its ratings on Tucson Electric Power Co. (TEP). The outlook is stable. The rating action reflects the Dec. 30, 2004 announcement that a consortium led by Kohlberg Kravis Roberts&Co. has terminated its efforts to acquire UniSource Energy Corp, TEP's parent. The prospects for the transaction were all but ended with the Arizona Corporation Commission's (ACC) 4-1 vote on Dec. 21 to reject the buyout proposal, but the consortium's decision formally terminates the year-long effort to obtain the regulatory approvals necessary to complete the deal. TEP is already heavily leveraged and the acquisition would have added a net $400
