S&P: Westar Energy unaffected

Standard & Poor's said Thursday that the refinancing by Westar Energy Inc.'s (BB+/positive/-) subsidiary, Kansas Gas & Electric Co. (BB+/positive/-), of $58.3 million of its 6% pollution control bonds due 2033 and $327.5 million of 7% pollution control bonds due 2031 will reduce the company's interest expense.

Interest savings will vary over the term of the newly issued bonds as portions of the bonds were issued in variable rate structures.

S&P said that although the lower costs bring Westar another step closer to achieving investment-grade ratings, additional credit enhancing initiatives will be needed to raise the company's ratings. To make the transition to investment grade, Westar's cash flow metrics need to be solidly investment-grade quality, the agency added.

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