Fitch Ratings Affirms Westar & KG&E; Outlook To Positive.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 5, 2003

Fitch Ratings has affirmed the ratings of Westar Energy (WE) and its wholly-owned utility operating subsidiary, Kansas Gas & Electric (KG&E).

Westar's ratings are as follows:

-- Senior secured debt 'BB+';

-- Senior unsecured debt 'BB-';

-- Preferred stock 'B+'.

The trust preferred securities of Western Resources Capital Trust I, are affirmed at 'B+' by Fitch. The ratings of KG&E's senior secured debt are affirmed at 'BB+'. The Rating Outlook is revised to Positive.

The rating affirmation and revised Rating Outlook reflect meaningful progress by WE in the implementation of its restructuring plan, including the sale of its investments in Oneok (OKE) and Protection One Europe. Importantly, the OKE sale was accomplished well ahead of schedule and at prices consistent with the plan outlined by WE. The company's restructuring plan was approved by the Kansas Corporation Commission (KCC) in July 2003 and aims to restore WE's credit worthiness to investment grade status via debt reductions funded by internal cash flow, a common stock dividend reduction, potential equity issuance, and proceeds from the sale of all non utility assets.

WE's current ratings reflect the company's high debt levels relative to EBITDA and weak coverage ratios. The ratings also consider management efforts to improve its relationship with state regulators, while focusing exclusively on utility operations in Kansas. High debt balances at WE are primarily a function of the utility's significant investment in the monitored alarm business, Protection One (P1), which increased debt without materially enhancing cash flow. Although management has made significant progress in implementing its asset divestment program, further work needs to be done, including the sale of P1 and the issuance of new equity to achieve the minimum 40% year-end 2004 equity ratio mandated by the KCC-approved financial restructuring plan. Potential exposure to ongoing federal investigations into the conduct of former management is also a marginal concern though not rating critical. The change in senior management team, management's strategy to return to its utility roots and emphasis on improved regulatory relations and the KCC's constructive response to WE's efforts are favorable developments for debt holders.