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To: Tenchusatsu who wrote (150113)	11/28/2001 2:46:20 PM
From: GVTucker	Respond to of 186894

Tenchusatsu, RE: Do you think that the downgrade was warranted, considering Enron's circumstances? If so, then I don't see why an analyst should be credited for "single-handedly" destroying market cap. Yes, the downgrade was probably justified. But the analyst rating is the important factor, not the reasons behind the rating. That is because Dynergy had an out in their purchase offer that allowed them to walk away if Enron was not an investment grade. If the downgrade had not occurred, Dynergy could have been obligated to do some sort of deal. That's why the stock and the bond prices collapsed right after the S&P downgrade, because everyone knew that Dynergy would have an out. Often, investment banks can lean on S&P not to downgrade in such a situation, which is why the bonds had been holding up.