S&P raises Aquila

Standard & Poor's said it raised its corporate credit rating on Aquila Inc. to B+ from B.

The rating remains on CreditWatch with positive implications pending requisite approvals for the sale of 100% of Aquila's common stock to Great Plains Energy Inc., the agency added.

The upgrade follows Aquila's announcement that it will repurchase another $344 million in outstanding debt by June 15, bringing total adjusted debt reduction to about $1.1 billion since year-end 2005, the agency said.

"The pending repurchases are the final step in Aquila's original divestiture and debt reduction plan," said S&P credit analyst Jeanny Silva.

The plan called for the sale of three gas utilities and one electric utility, with proceeds, originally estimated at about $1 billion, applied to debt reduction, the agency said.

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