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S&P raises Aquila rating

Standard & Poor's Ratings Services (S&P) has raised its corporate credit rating on energy provider Aquila to 'B-' from 'CCC+' and removed the rating from CreditWatch, where it was placed with developing implications on July 21, 2004. The outlook is negative.

The Kansas City-based company has about $2.5 billion of debt and the rating upgrade is largely based on Aquila's termination of a long-term, prepaid natural gas supply contract with the Municipal Gas Authority of Mississippi and an agreement with the American Public Energy Agency to terminate two long-term natural gas supply contracts on September 30, 2004.

“The termination allows the company to regain access to a substantial portion of its liquidity and alleviates credit concerns

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