S&P lifts Great Plains and affiliates

S&P said it raised the issuer credit ratings on Great Plains Energy Inc. and subsidiaries Kansas City Power & Light Co. (KCP&L) and KCP&L Greater Missouri Operations Co. (GMO) to A- from BBB+.

The agency also said it raised the issuer credit ratings on Westar Energy Inc. and subsidiary Kansas Gas & Electric Co. (KGE) to A- from BBB+.

The outlook on all of these entities is stable.

Great Plain is in the final stages of completing the merger with Westar, S&P explained.

The upgrades of Great Plains and its subsidiaries reflect a view that the newly merged company will have an enhanced business risk profile, the agency said.

This is because Westar's and Kansas Gas's regulated electric utility operations benefit from a generally constructive regulatory framework in Kansas and service territories adjacent to Great Plains's utilities, S&P said.

In addition, the combined entity will have more diverse electric utility cash flow sources, a more balanced regulatory framework, larger customer base of about 1.6 million customers and nearly full ownership of the Wolf Creek nuclear plant, allowing for greater control under the consolidated entity, the agency said.

These factors should strengthen the combined entity's business risk profile from what it was for Great Plains on a stand-alone basis, S&P said.

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