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To: Softechie who wrote (1717)	12/20/2001 11:32:46 AM
From: Softechie	Read Replies (1) \| Respond to of 2155

Mirant/Offering -3: Follows Moody's Downgrade >MIR 20 Dec 10:51 Earlier Thursday, Mirant unveiled plans to offer 40 million common shares, reduce its 2002 budget by 40%, or $1.5 billion, and sell assets with expected proceeds of $1.6 billion in an attempt to strengthen its balance sheet and improve its debt-rating status. On WEdnesday, Moody's Investors Service downgraded the company's debt to speculative-grade, or junk status. Mirant said it expects total sources of liquidity of $4.8 billion through the end of 2002, excluding expected proceeds from the offering of common equity. Moody's downgrading of Mirant's credit rating is the latest in a growing list of energy companies to suffer from tightening credit standards following Enron Corp.'s (ENE) collapse, The Wall Street Journal reported Thursday. The Journal article reported the downgrade sends a clear signal to the market that Mirant's debt-reduction program, previewed to credit-rating agencies in recent days and expected to be made public Dec. 20, was judged inadequate by Moody's. Mirant wasn't even on Moody's credit watch list. But Enron's demise has convinced credit-rating agencies that power trading is a riskier enterprise than they realized, according to the Journal. Moody's expects Mirant's cash flow to be restricted over the coming months, during which time Mirant will continue to fund its power plant construction expenditures as well as cover ongoing interest payments and preferred dividends. Moody's said the company will require credit support for its marketing and trading operations. Adding to Mirant's woes, Moody's said it will keep Mirant's credit rating under review for further downgrade pending the company's actions to improve its capitalization and arrangements to obtain financing. Earlier this week, fellow energy company Calpine Corp. (CPN), which recently lost its short-lived investment-grade status with Moody'sInvestors Service, sold an offering of $1 billion in five-year senior unsecured convertibles via Deutsche Banc Alex Brown. Mirant's double-shot of earnings warnings comes after projecting 2002 earnings of $2.55 to $2.65 a diluted share in September, including 20 cents for new accounting rules pertaining to goodwill and intangibles. Mirant then reiterated that guidance at the end of October. Mirant earned 98 cents a share, on revenue of $13.3 billion for its year ended Dec. 31, 2000. Shares of Mirant recently changed hands at $13.75, down 14.4% on volume of 6 million compared with average daily volume is 3.1 million. Company Web site: mirant.com -Thomas Gryta; Dow Jones Newswires; 201-938-5400 (END) DOW JONES NEWS 12-20-01 10:51 AM