S&P: stock sale supports Westar

Standard & Poor's said Wednesday that Westar Energy Inc.'s (BB+/positive/--) expected common stock issuance will enhance the company's frail financial profile.

Westar has filed a Rule 415 shelf registration to offer up to 14 million shares for a total potential offering of about $280 million at current trading levels of $20 per share. The shelf filing also encompasses $900 million of debt securities.

The proceeds from future common stock and debt issuances will be used to repay outstanding debt.

S&P said the positive outlook on Westar incorporates S&P's expectation for credit improvement through balance sheet improving initiatives, such as common stock sales. The extent of financial improvement will hinge importantly on the actual size of common equity offerings and associated debt paydown.

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