Fitch Ratings Lowers Ameren, Upgrades CILCORP & CILCO.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 29, 2003

Fitch Ratings has downgraded the senior unsecured debt rating of Ameren Corporation to 'A-' from 'A+' and the commercial paper rating to 'F2' from 'F1'. The ratings are removed from Rating Watch Negative. Fitch Ratings has also raised the ratings of Ameren subsidiaries CILCORP and Central Illinois Light Company (CILCO) and removed those ratings from Rating Watch Positive. The senior unsecured debt ratings of CILCORP were raised to 'BBB+' from 'BBB-' and the senior secured, senior unsecured debt and preferred stock ratings of CILCO were raised to 'A','A-' and 'BBB+' from 'BBB','BBB-' and 'BB+', respectively. The commercial paper rating of Ameren CIPS has been lowered to 'F2' from 'F1' and the rating is withdrawn. The other debt ratings of AmerenCIPS, as well as all of the ratings of AmerenUE and Ameren Energy Generating Company, are affirmed as shown in the table below. The Rating Outlook for all entities is Stable.

The downgrade of Ameren Corp. is due to an increase in consolidated leverage resulting from the recent merger with CILCORP. Consolidated leverage is also expected to increase due to a large, $2.25 billion capital expenditure program at Ameren's largest subsidiary, AmerenUE, which will be financed in part with new debt. Also, previous ratings did not sufficiently reflect the structural subordination of Ameren Corp's debt to that of its subsidiaries.

The ratings of CILCO reflect its strong earnings and cash flow from regulated utility activities, modest leverage and a constructive deregulation program in Illinois. CILCORP's rating considers that the majority of revenues and earning are from regulated utility activities, as well as, aggressive consolidated leverage and the lackluster performance of certain non-regulated businesses. CILCORP's and CILCO's prior ratings were constrained by the ratings of its prior owner, AES Corp. (senior unsecured rated 'B' by Fitch).

Ameren Corp through its regulated utilities serves 1.7 million electric customers and 500,000 natural gas customers in a 49,000-square-mile area of Missouri and Illinois. Ameren through Ameren Energy Generating Company is also engaged in the generation and sale of electricity to wholesale customers.

The ratings of Ameren Corp. and its subsidiaries are as follows:

Ameren Corporation

-- Senior unsecured debt downgraded to 'A-' from 'A+';

-- Commercial paper downgraded to 'F2' from 'F1'.

CILCORP

-- Senior unsecured debt upgraded to 'BBB+' from 'BBB-'.

CILCO

-- Senior secured debt upgraded to 'A' from 'BBB';

-- Senior unsecured debt upgraded to 'A-' from 'BBB-';

-- Preferred stock upgraded to 'BBB+' from 'BBB-'.

AmerenUE

-- Senior secured debt affirmed at 'A+';

-- Senior unsecured debt affirmed at 'A';

-- Junior subordinated debt affirmed 'A-';

-- Preferred stock affirmed at 'A-';

-- Commercial paper affirmed at 'F1'.

AmerenCIPS

-- Senior secured debt affirmed at 'A';

-- Senior unsecured debt affirmed at 'A-';

-- Preferred stock affirmed at 'BBB+';

-- Commercial paper downgraded to 'F2' from 'F1' and withdrawn.

Ameren Energy Generating Company

-- Senior unsecured debt affirmed at 'BBB+'.