S&P lifts Kansas City Power bonds to BBB+

Standard & Poor's said it raised the issue-level rating on Kansas City Power and Light Co.'s senior secured debt to BBB+ from BBB and assigned a 1 recovery rating to this debt.

The agency said that the rating is based on the company's indenture, which restricts the amount of outstanding senior secured debt to no more than 75% of bondable property, and that raising an issue-level rating above the BBB corporate credit rating is supported by the first-priority lien on substantially all of the utility's property and franchises owned or acquired.

Because of their essential nature, S&P said, the value of utility assets is largely independent of the owner's financial condition.

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