S&P: Westar view to negative

S&P said it affirmed the ratings on integrated electric utilities Westar Energy Inc. and subsidiary, Kansas Gas & Electric Co., including the BBB+ issuer credit ratings.

The agency also said it revised the group’s outlook to negative from stable.

Westar Energy agreed to be acquired by Great Plains Energy Inc. for $8.6 billion, plus the assumption of Westar's debt, S&P said.

The ratings reflect a view that the acquisition will enhance Great Plain’s business risk profile given that Westar's operations consist of regulated electric utilities that benefit from operations under a generally constructive regulatory framework and service territories with average customer growth, S&P said.

The outlook revision reflects the potential for lower ratings on Westar after the merger closes, if the combined entity's financial performance weakens, the agency explained.

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