S&P: Westar unaffected

Standard & Poor's said that although the recommendation by the Kansas Corporation Commission's staff in Westar Energy Inc.'s (BB+/positive/-) pending rate case is punitive, the recommendation will not affect the rating or outlook on the company.

The staff's endorsement is not binding on the Kansas Corporpation Commission, which is expected to issue an order in December, S&P said.

The staff's initial publicly announced proposal of a $30 million rate cut is actually a decrease of $66 million, because it did not include a $36 million rate credit related to wholesale sales that will be made to customers through Westar's proposed fuel adjustment clause, S&P said.

Notwithstanding the progress Westar has made to reduce its risk and strengthen its leveraged balance sheet, a final commission order that mirrors the staff's recommendation would likely delay the achievement of investment-grade ratings, S&P said.

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