Fitch Lowers IPALCO, Indianapolis, & Central Illinois Light.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 28, 2001

Fitch has changed the ratings of Indianapolis Power & Light Co. (IP&L) and IPALCO to reflect the closing of the IPALCO's merger with AES Corp. At the same time, ratings of Central Illinois Light Co. were also changed to reflect AES Corp.'s indirect ownership of the company and to conform to Fitch's corporate rating criteria for the ratings of affiliated companies. The senior unsecured debt rating of CILCORP is unchanged. Ratings of Central Illinois Light Co. and CILCORP remain on Rating Watch Evolving, while ratings of IP&L and IPALCO are changed to Outlook Stable from Rating Watch Negative pending their planned sale. The ratings affected are listed below.

Indianapolis Power & Light Co. (IP&L)

-- First mortgage bonds and secured pollution control revenue bonds downgraded
to `BBB+' from `AA+';

-- Senior unsecured debt downgraded to `BBB' from `AA';

-- Preferred stock downgraded to `BBB' from `AA-`;

-- Commercial paper downgraded to `F2' from `F1+';

-- Rating Outlook Stable, formerly on Rating Watch Negative.

IPALCO

-- Senior unsecured debt downgraded to `BBB' from `AA-';

-- Commercial Paper downgraded to `F2' from `F1+';

-- Rating Outlook Stable, formerly on Rating Watch Negative.

Central Illinois Light Co.

-- First mortgage bonds and secured pollution control revenue

bonds downgraded to `BBB+' from `A+';

-- Preferred stock downgraded to `BBB' from `A-`;

-- Commercial paper downgraded to `F2' from `F1';

-- Remains on Rating Watch Evolving.

CILCORP

-- Senior unsecured debt affirmed at `BBB';

-- Remains on Rating Watch Evolving.

The driving factor for lowering the ratings of IP&L, IPALCO, and Central Illinois Light is the ownership and control of the companies by a highly leveraged parent, AES Corporation (senior debt `BB+'). The individual financial measures of all three companies are strong relative to their new ratings, but AES has a high degree of control over the business affairs and finances of the companies.

As a condition of SEC approval of the IPALCO acquisition, AES Corporation is required to divest the transmission and distribution utility business of Central Illinois Light within two years. AES Corporation is currently examining various options to accomplish the divestiture. Both Central Illinois Light and CILCORP's ratings are maintained on Rating Watch Evolving status since the pending sale of the utility business and the transactions involving generation assets are still uncertain.