Fitch Places AES, IPALCO, & Indianapolis Power & Light on Rtg Watch Pos

Business Wire, Jan 18, 2005

NEW YORK -- Fitch Ratings has placed the ratings of AES Corporation (AES), IPALCO Enterprises Inc. (IPALCO), and Indianapolis Power & Light Company (IPL) on Rating Watch Positive. A full description of the rating actions is listed below.

The Rating Watch Positive reflects the significant progress AES has made in retiring parent company recourse debt and improving liquidity. In 2004, AES retired $800 million of parent company debt. In addition, AES refinanced several near-term debt maturities, extending the company's debt maturity profile. The company has successfully accessed both the debt and equity markets in 2004 and 2003. Furthermore, the company has in place a $450 million revolving credit facility, which significantly improves the company's liquidity position. In addition to the improved parent company financial profile, AES resolved issues at key subsidiaries such as Electricidad de Caracas and Gener, resulting in the resumption of dividend distributions from such subsidiaries.

While the recently announced acquisition of SeaWest Holdings Inc. marks the return of AES into an expansion mode, Fitch notes that the acquisition was made with cash on the balance sheet. Fitch will continue to monitor future AES investments to ensure that such investments do not result in escalating parent company leverage.

IPALCO's and IPL's ratings were also placed on Rating Watch Positive to reflect the substantially reduced risk to those companies relating to the affairs of AES and the improvement in credit profile at AES discussed earlier.

Fitch expects to resolve the Rating Watch status upon reviewing the year-end results of AES, IPALCO, and IPL. At the same time, Fitch will review and resolve the notching of the various levels of seniority of AES' debt to reflect the reduced amount of first lien debt and consequent benefit to second lien and senior unsecured obligations.

AES is a leading global power company, with 2003 revenues of $8.4 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 111 power facilities and delivers electricity through 17 distribution companies.

IPALCO is a holding company for IPL. IPL is an integrated electric utility serving the City of Indianapolis, Indiana and the surrounding area. IPALCO and IPL are wholly owned subsidiaries of AES.