Fitch Rates Indianapolis Power & Light Variable-Rate Bonds 'AAA'

Business Wire, April 13, 2005

NEW YORK -- Fitch Ratings has assigned an 'AAA' rating to the $71.85 million issuance of the City of Petersburg, Indiana Pollution Control refunding revenue bonds (Indianapolis Power & Light Company Project). The issuance consists of $41.85 million series 2005A bonds due Jan. 1, 2016 and $30 million series 2005B due Oct. 1, 2023 (collectively, the bonds). The issuance is insured by Ambac Assurance Company. The underlying secured rating of Indianapolis Power & Light Company (IPL) is 'BBB'. The bonds will initially bear interest at an auction rate that may be changed to a longer term interest rate. Proceeds from the sale will be used to redeem existing bonds.

Fitch placed the ratings of IPL and its ultimate parent company, AES Corporation (AES) on Rating Watch Positive on Jan. 18, 2005. The revision in Rating Watch status reflects the significant progress AES has made in retiring parent company recourse debt and improving liquidity. IPL's rating reflects the linkage to the ratings of AES. Fitch expects to resolve the Rating Watch status shortly.

IPL is a regulated utility with a customer base concentrated in Indianapolis, Indiana and is an indirect wholly owned subsidiary of AES Corporation.