S&P: Ameren purchase credit neutral

Standard & Poor's said Wednesday that Ameren Corp.'s (A-/Watch negative/A-2) purchase of Aquila Inc.'s natural gas distribution facilities in east-central Missouri has no affect on the creditworthiness of Ameren or its subsidiaries.

S&P said the size of the acquisition is nominal and will be funded with cash on hand.

The recent Missouri Public Service Commission approval of the deal paves the way for 4,200 Aquila customers to become customers of Ameren's subsidiary Union Electric Co. The acquisition, which is expected to close around May 3, also includes natural gas distribution mains and assets needed to operate the system. Rates will remain the same and will be subject to a rate freeze until 2006.

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