S&P may cut MidAmerican

Standard & Poor's said it placed the A- ratings on MidAmerican Energy Holdings on CreditWatch with negative implications.

The action follows the company's tentative agreement to acquire Constellation Energy Group Inc. (BBB/Watch developing/A-2) for $26.50 a share.

S&P said the deal represents a sharp departure from expectations that additional acquisitions would be squarely and narrowly focused on regulated, integrated electric and gas operations. The willingness to acquire beleaguered Constellation reflects an appetite for risk that may be inconsistent with an A rating, the agency added.

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