TEXT-S&P revises ALLETE outlook to negative

(The following statement was released by the rating agency)

Dec 9 - Standard & Poor's Ratings Services revised its outlook on ALLETE
Inc. (ALE.N) to negative from stable to reflect the weakening financial profile
and the economic challenges facing the company in 2009. This is largely due to
lower operating cash flows and increasing debt leverage that constrain
financial measures. At the same time, Standard & Poor's affirmed its 'BBB+'
corporate credit rating on the company. Duluth, Minn.-based ALLETE has $560
million in total debt.

The negative outlook on ALLETE reflects Standard & Poor's expectations
that the weakening financial measures will not return to levels indicative of
an intermediate financial profile due to ongoing economic pressures and the
company's large construction program. The industrial load in the utility's
service territory could decline due to a protracted economic downturn.
Financial measures have also weakened following the Florida real estate market
demise, and may not strengthen in the near term. Unless cash flow measures or
financial policy show significant improvement in 2009, we will lower the
ratings. If financial measures were to return to levels indicative of
intermediate financial risk profile, we could revise the outlook to stable.
The capital spending program over the next several years will continue to need
supportive regulation to bolster cash flow measures during construction.

Complete ratings information is available to subscribers of
RatingsDirect, the real-time Web-based source for Standard & Poor's credit
ratings, research, and risk analysis, at www.ratingsdirect.com. All ratings
affected by this rating action can be found on Standard & Poor's public Web
site at www.standardandpoors.com; select your preferred country or region,
then Ratings in the left navigation bar, followed by Credit Ratings Search.
Primary Credit Analyst: Gerrit Jepsen, CFA, New York (1) 212-438-2529;

gerrit_jepsen@standardandpoors.com
Secondary Credit Analyst: Matthew O'Neill, New York (1) 212-438-4295;

matthew_oneill@standardandpoors.com
(New York Ratings Team)