S&P assigns BB- to Kansas Gas bonds

Standard & Poor's said it assigned its BB- rating to Kansas Gas & Electric Co.'s (KG&E) $320 million secured facility bonds series 2005 due 2021 and affirmed parent Westar Energy Inc.'s BB+ corporate credit ratings.

The outlook remains positive.

The ratings on KG&E reflect Westar's consolidated credit profile, which includes a business profile based on the core vertically integrated electric utility operations in Kansas and a weak but improving financial profile, S&P said.

Westar's business profile, S&P noted, also reflects low system-wide production costs, solid operational performance of both coal and nuclear facilities and a manageable construction program.

These attributes are partially offset by KG&E's high fixed costs and the inherent challenges of owning and operating the Wolf Creek nuclear facility in which KG&E has a 47% interest, the agency added.

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