Mostly regulated integrated utility; Recent constructive regulatory settlement; and Supportive rate-making mechanisms. Large capital expenditures concurrent with the economic recession; Weak cash flow measures; and Reliance on the current volatile capital markets. The ratings on Kansas Gas & Electric Co. (KG&E) are based on parent Westar Energy Inc. consolidated credit profile. The ratings also reflect the KG&E's excellent business profile and Westar's aggressive financial profile. As of Sept. 30, 2008, the Topeka, Kan.-based Westar had about $2.3 billion of total debt outstanding. Westar distributes electricity to approximately 675,000 customers in Kansas. The company also generates approximately 6,500 MW of electricity, using a fuel mix of about 80% coal and 14% uranium. The excellent business profile primarily reflects a mostly regulated...
Companies mentioned in this report are:
- Kansas Gas & Electric Co.
- Westar Energy Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis