Moody's assigns Westar Energy SGL-3 liquidity rating

Moody's Investors Service said it assigned a SGL-3 speculative liquidity rating to Westar Energy Inc.

Moody's said the SGL-3 rating reflects the company's adequate liquidity position given the ongoing pressures on financial performance associated with its historical unregulated growth initiatives, a continuing reliance on asset sales as part of its debt reduction strategy, and large ongoing capital requirements.

These factors are partially offset by a successful sales program of its ONEOK Inc. stock that has allowed for significant debt reduction in 2003 and a buildup in liquidity to occur.

The SGL-3 rating assignment assumes that the existing cash balances will diminish significantly over the next 12 months as existing maturities are met leaving a nominal cushion to support unforeseen contingencies. A portion of the sale proceeds has been targeted on reducing the outstandings under the company's term loan facility due in June 2005.

Moody's said it anticipates that financial performance will be sufficient that the company will not be challenged to meet the compliance standards of its debt covenants and that once Protection One is sold additional strengthening is indicated.

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