S&P: Westar Energy unaffected

Standard & Poor's said Westar Energy Inc.'s (BB+/positive/-) expected decision to increase its dividend detracts from the company's credit quality but is already incorporated into its ratings and outlook on the company.

S&P said Westar's board of directors approved a quarterly dividend of $0.23 per share, payable Jan. 3, 2005, on the company's common stock. The new dividend represents an indicated annual rate of $0.92 per share compared with the most recent annual dividend of $0.76 per share.

The higher dividend may lower discretionary cash flow available to pay down debt and may signal a slow down in future debt reduction, according to S&P.

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