Auric Goldfinger's Short List Message Board

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Non-Tech : Auric Goldfinger's Short List

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To: rupers who wrote (8536)	11/28/2001 11:03:54 AM
From: RockyBalboa	Read Replies (1) of 19428

HALT!!! (Edit: no. NYSE doesn't trade so it trades on the instinet, but the price is $1.45. The NYse trading is halted... but they forgot to issue an OTC halt) Reason: SP junks enron paper... PRESS RELEASE: Enron Corp Credit Cut By S&P Following is a press release from Standard & Poor's: NEW YORK (Standard & Poor's) Nov. 28, 2001--Standard & Poor's today lowered its long-term corporate credit rating on Enron Corp. to single-'B' minus from triple-'B'-minus, as well as other Enron ratings and those of most of its subsidiaries due to concerns about the viability of the merger agreement with Dynegy Inc. and the liquidity implications of the possible failure of that transaction. The 'A-3' short-term rating is withdrawn. The ratings are placed on CreditWatch with developing implications (see list below). The rating action is based on Standard & Poor's loss of confidence that the Dynegy merger will be consummated. The willingness of Dynegy to complete its planned acquisition of Enron has been compromised by the continued drop in confidence in the capital markets that the transaction would hold. The market reaction has spread to the energy markets, where Enron's trading and marketing franchise has, in Standard & Poor's opinion, sustained significant damage that, together with rising potential legal liabilities, weakens Dynegy's commitment to purchase Enron. A collapse of the Dynegy deal would create enormous pressure on Enron's credit profile because of Enron's limited access to capital at a time when extensive debt restructuring is necessary. Furthermore, Enron faces rising liquidity needs in connection with its trading activities as counterparties demand greater assurances to transact business with Enron. A move by Enron to seek protection from its creditors through a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code is a distinct possibility if the merger falls through. The change in CreditWatch implications to developing reflects the possibility that Enron's ratings can move higher or lower from the single-'B'-minus' level. If the Dynegy merger or a similar transaction materializes, the rating could be upgraded. In the absence of Dynegy or another partner, the credit quality of an independent Enron could go even lower. RATINGS LOWERED, ON CREDITWATCH DEVELOPING - Enron Corp. TO FROM Long-term corporate credit rating B- BBB- Senior unsecured debt B- BBB- Subordinated debt CCC BB+ Preferred stock CCC- BB - Transwestern Pipeline Co. Corporate credit rating B- BBB- - Northern Natural Gas Co. Corporate credit rating B- BBB- Senior unsecured debt B- BBB- - Marlin Water Trust II Corporate credit rating CCC+ BB+ Senior secured debt CCC+ BB+ - Enron Capital LLC Preferred stock* CCC- BB - Enron Capital Resources L.P. Preferred stock* CCC- BB - Enron Capital Trust I Preferred stock* CCC- BB - Enron Capital Trust II Preferred stock* CCC- BB *Guaranteed by Enron Corp. - Osprey Inc. Corporate credit rating CCC+ BB+ Senior secured debt CCC+ BB+ - Osprey Trust Corporate credit rating CCC+ BB+ Senior secured debt CCC+ BB+ - Enron Funding Corp. Corporate credit rating B- BBB- RATINGS AFFIRMED - Enron Funding Corp. Senior unsecured debt AA- RATINGS WITHDRAWN - Enron Corp. Short-term corporate credit rating A-3 Commercial paper A-3

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