COLUMBUS, Ohio, Sept. 14, 2005 – Debt ratings for American Electric Power (NYSE: AEP) have been upgraded by Moody’s Investors Service.

Moody’s today announced that it has upgraded AEP’s senior unsecured rating to Baa2 from Baa3 and its commercial paper rating to Prime-2 from Prime-3. There are no changes in the ratings or rating outlook for AEP subsidiaries. Moody’s rating outlook is stable for AEP and its subsidiaries.

The agency cited AEP’s reduced business risk and improved financial profile, pointing to the sale of non-core assets, substantial debt reduction and fewer unregulated business activities, including an exit from speculative energy trading. Moody’s noted positive regulatory developments for some of AEP’s utility subsidiaries, particularly in Ohio and Texas, resulting in increased certainty of future consolidated cash flows.

Moody’s said the company’s efforts to improve its credit profile favorably impacted 2004 financial results and that this trend has continued into 2005. The upgrade also reflects AEP’s solid liquidity position.

“We’re very pleased that Moody’s has recognized AEP’s strategic focus on our strong utility business and our significant progress in strengthening our balance sheet and improving our financial profile,” said Susan Tomasky, executive vice president and chief financial officer.

American Electric Power owns more than 36,000 megawatts of generating capacity in the United States and is the nation’s largest electricity generator. AEP is also one of the largest electric utilities in the United States, with more than 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid. The company is based in Columbus, Ohio.