S&P affirms Great Plains Energy

Standard & Poor's said it affirmed Great Plains Energy Inc.'s BBB corporate credit rating, BBB- senior unsecured debt rating and BB+ preferred stock and subsidiary Kansas City Power & Light Co.'s BBB senior secured debt rating, BB+ preferred stock rating and A-2 commercial paper rating following a periodic review of the companies. The outlook is stable.

The agency said Great Plains Energy's weak business risk profile - 7 on S&P's 10-point scale, where 1 represents the strongest - is driven by subsidiary Kansas City Power's business profile (6), which accounted for over 80% of cash flow of Great Plains Energy's consolidated cash flow in 2005.

Kansas City Power's business position is characterized by a healthy service territory with little industrial concentration, solid nuclear operations, very low fuel costs and competitive electric rates.

These attributes are partially offset by fuel concentration in Powder River Basin coal-fired plants; nuclear risks associated with the 47% owned Wolf Creek station; a somewhat challenging, albeit improving, regulatory environment; and future capital requirements associated with compliance with increasingly stringent emissions standards, S&P said.

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