TEXT-Fitch affirms Westar ratings

May 31 - Fitch Ratings has affirmed the long-term Issuer Default Ratings
(IDRs) on Westar and its utility subsidiary Kansas Gas and Electric
Company (KGE) at 'BBB'. A full list of rating actions is shown at the end of
this release.

The Rating Outlook for both entities is Stable.

These rating actions affect $2.375 billion of first mortgage bonds,
approximately $248 million of secured variable interest entity debt, $150
million of secured pollution control revenue bonds, and $21.4 million of
preferred stock.

Key rating factors include:

--A generally constructive regulatory environment in Kansas;

--Management's focus on core utility operations and transmission projects;

--A moderately large capital spending program that includes a significant amount
of required environmental upgrades at the utilities' coal-fired power plants.

Low Rates and Constructive Regulation:

Westar and KGE's low customer rates should mitigate impediments to continued
balanced general rate case (GRC) outcomes from the Kansas Corporation Commission
(KCC). Fitch expects cash flows to improve modestly this year, due to the $50
million rate increase that went into effect late April. Westar will be filing an
abbreviated rate case by April 2013 in order to begin recovering costs
associated with the La Cygne Generating Station's environmental upgrades.

Cost Recovery Mechanisms:

The KCC and the Federal Energy Regulatory Commission (FERC) allow Westar and KGE
to use cost-recovery mechanisms for certain expenditures, which decreases
regulatory lag and provides stability to the financial profile. Of particular
importance are the environmental cost recovery rider (ECRR) and the
FERC-approved transmission formula rate, each of which is expected to cover more
than 20% of consolidated capex through 2013.

The KCC previously ruled against the ECRR being used for environmental capex
over the next few years at the La Cygne Generating Station, due to it being
jointly-owned by and solely operated by Kansas City Power & Light, a subsidiary
of Great Plains Energy Inc. (not rated by Fitch). However, Fitch expects full
recovery of the pre-approved capex to be likely through the aforementioned
planned abbreviated rate case filing and the utilities' next GRC filing.

Other cost recovery mechanisms authorized by the KCC include a retail energy
cost adjustment mechanism for fuel and purchased power, and a pension and other
post-employment benefits expense tracker.

Focus on Utility Operations:

Management remains focused on Westar and KGE's core utility operations and has
taken efforts to strengthen the balance sheet. Generation, transmission, and
environmental projects have been funded with a balanced mix of debt and equity,
and the company's capex budget has been structured prudently and spread out over
many years so as to mitigate the impact on financial performance.

Capex Program Temporarily Depressing Financial Metrics:

Fitch expects Westar's consolidated financial metrics to be strained through
2014 due to the EPA-mandated environmental upgrades to some of its coal-fired
generating facilities. Total capex is expected to peak in 2013 at approximately
$900 million, with the bulk of the environmental spending expected to be
completed by 2014. In 2015, Fitch expects capex to return to the recent
historical average of roughly $600 million.

Fitch anticipates Westar's EBITDA interest coverage to average greater than 4.0
times (x) through 2015. Funds from operations (FFO) to debt is expected to be
temporarily depressed at around 15% - 16% through 2014 during this period of
heightened capital spending, before starting to recover to stronger levels in
2015.

Solid Liquidity:

Westar and KGE have a solid liquidity position, and Westar's new commercial
paper program should enable the utilities to access the short-term debt markets
at attractive rates. The commercial paper is supported by a $730 million
revolving credit facility that matures on Sept. 29, 2016 and a $270 million
revolving credit facility that matures on Feb. 18, 2015.

Subject to lender participation, each of these revolving credit facilities can
be extended up to two years and has an accordion feature that would allow for up
to $400 million in aggregate of additional borrowing capacity. Ample
availability under these facilities, along with the utilities' history of being
able to access public equity and debt even during turbulent markets, should give
Westar and KGE sufficient financial flexibility in carrying out their
construction projects.

Rating Linkage Between Westar and KGE:

The credit ratings for Westar and KGE are the same, reflecting centralized
operations and treasury functions and a consolidated capital structure used for
ratemaking. Westar and KGE conduct business under the Westar Energy brand name
and have functionally integrated utility operations.

KGE relies on Westar for its short-term cash needs, and Westar's revolving
credit facilities are collateralized by KGE's first mortgage bond indenture.
Furthermore, no regulatory or corporate structures exist to restrict the
migration of cash between the two entities.

Fitch has affirmed the following ratings with a Stable Outlook:

Westar
--Long-term IDR at 'BBB';
--Senior secured debt at 'A-';
--Senior unsecured debt at 'BBB+';
--Preferred stock at 'BBB-';
--Short-term IDR at 'F2';
--Commercial paper at 'F2'.

KGE
--Long-term IDR at 'BBB';
--Senior secured debt at 'A-';
--Pollution control revenue bonds at 'A-';
--Short-term IDR at 'F2'.

Fitch plans to withdraw Westar's preferred stock rating upon redemption of the
securities, expected to occur on July 1, 2012.