Business: Business today

PROGRESS ENERGY RE-EVALUATED: Moody's Investors Service cut Progress Energy Inc.'s long-term debt rating by one notch with expectations that the rating will remain stable. The ratings agency cited the company's slower-than-expected reduction of the large debt resulting from its purchase in late 2000 of Florida Progress Corp. of St. Petersburg. Moody's also said it was lowering the outlook on the debt rating of Progress Energy Florida, formerly Florida Power, to negative, citing factors including the utility's rate reduction last year.

RETIREE BENEFITS THREATENED: Bethlehem Steel said it would seek elimination of health and life insurance benefits for 95,000 retired workers and their dependents, telling a bankruptcy court that it can no longer afford it. The United Steelworkers of America condemned the request as "morally callous." The Philadelphia company, which filed for Chapter 11 protection in 2001, proposes ending the benefits March 31.

POTENTIAL DELISTING: Z-Tel Technologies Inc. said it faces delisting from the Nasdaq SmallCap Market because its market capitalization has fallen below the required $35-million. The Tampa telephone company said it will request a hearing to appeal the determination. The company's shares will continue trading on the small-cap market until a decision is made on the appeal, Nasdaq spokeswoman Melissa Fox said. Z-Tel's shares were transferred from the Nasdaq National Market in September. The company's market cap after the close of trading Friday was about $28.57-million, based on its 35.27-million shares outstanding and the stock's closing price of 81 cents, down 3 cents.

MORE OFFICE SPACE OCCUPIED: Tampa's office market showed signs of strengthening at the end of 2002, according to Advantis, the commercial real estate division of the St. Joe Co. The vacancy rate, not including sublease space, dropped from 16.2 percent to 15.3 percent, approaching levels of two years ago. But asking prices for high-quality Class A space averaged $20.38 per square foot, down 2 percent from the end of 2001.

ALLSTATE RATE INCREASE: Allstate, Florida's second-largest insurer, expects more moderate rate increases in the midsingle digits in 2003, chief executive Edward Liddy predicted in a conference call with analysts. In Florida, Allstate's 14.6 percent increase on auto insurance took effect last month, and the carrier raised homeowners insurance 15.7 percent last year.

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