enron mentions usa : update 1 - fitch cuts ratings on enron debt .
reuters english news service - 11 / 05 / 01
fitch downgrades enron to ` bbb - ' ; maintains rtg watch negative
business wire - 11 / 05 / 01
enron sr . unsecured debt cut to triple - b - minus by fitch
capital markets report - 11 / 05 / 01
usa : u . s . stocks seen higher at open on rate cut optimism .
reuters english news service - 11 / 05 / 01
uk : british power trading slow , prompt lifted early .
reuters english news service - 11 / 05 / 01
usa : update 1 - fitch cuts ratings on enron debt .
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 5 ( reuters ) - fitch on monday cut its ratings on the debt of embattled energy trader enron corp . and warned that it may cut the ratings again if the company does not reduce its debts , if its trading business deteriorates or if charges exceed present estimates .
" today ' s rating action reflects the difficulties enron faces in managing its liquidity position in the face of an erosion in investor confidence , " fitch said .
fitch cut houston - based enron ' s senior unsecured debt to " bbb - minus , " one notch above junk , from " bbb - plus , " its subordinated debt to " bb " from " bbb , " and its commercial paper to " f 3 " from " f 2 . " the rating agency also downgraded enron ' s preferred stock to " b - plus " from " bbb - minus . "
fitch said reducing debt and exiting problem businesses are a management priority , and if enron is successful , the company ' s credit profile will improve . " however , the targeted transactions have varying degrees of execution risk , particularly the divestiture of assets in emerging - market countries , " fitch said .
fitch ' s cut follows downgrades last week by moody ' s investors service and standard & poor ' s . enron ' s shares have lost more than 65 percent in less than a month amid concerns about financial practices that triggered an investigation by the u . s . securities and exchange commission .
s & p last thursday cut enron ' s corporate credit and senior unsecured debt ratings to " bbb , " two notches above junk status , from " bbb - plus . " moody ' s investors service last monday cut enron ' s senior unsecured debt to " baa 2 , " two notches above junk , from " baal . "
downgrades could make it tougher for enron to issue debt and run its day - to - day business if fellow marketers and traders demand more collateral .
enron lined up $ 1 billion of new credit last week but may still have to sell assets to head off a credit squeeze and restore investor confidence , according to investment bankers .
in its third - quarter results report last month , enron said it expected over a billion dollars of write - offs related to soured investments . it also announced an extra $ 1 . 2 billion write - down of shareholder equity related to investments that were not recorded on its balance sheet .
enron ' s 6 . 4 percent notes due in 2006 , bid at about 80 cents on the dollar a week ago , were bid at 73 cents on the dollar on monday , a strategist said .
enron shares were up 40 cents , or 3 . 55 percent , at $ 11 . 67 in midday trade on the new york stock exchange . the shares have been in free - fall for two weeks .
copyright ? 2000 dow jones maintains rtg watch negative
11 / 05 / 2001
business wire
( copyright ( c ) 2001 , business wire )
new york - - ( business wire ) - - nov . 5 , 2001 - - fitch downgrades enron ' s outstanding securities as follows : senior unsecured debt to ` bbb - ' from ` bbb + ' ; subordinated debt to ` bb ` from ` bbb ' ; and preferred stock to ` b + ' from ` bbb - ` . enron ' s commercial paper has been downgraded to ` f 3 ' from ` f 2 ' . the senior unsecured debt ratings of its pipeline subsidiaries , northern natural gas co . and transwestern pipeline co . , are lowered to ` bbb - ' from ` a - ` . all the above securities remain on rating watch negative status . fitch would consider further downgrades if enron were unable to make progress in reducing debt , if its wholesale marketing and trading business were to show signs of material deterioration , or if expenses and charges related to the disposition of non - core businesses and investments exceed present estimations .
today ' s rating action reflects the difficulties enron faces in managing its liquidity position in the face of an erosion in investor confidence . this follows the recognition of a substantial diminution in value of its global merchant investments , which were partly financed with an aggressive use of off - balance sheet vehicles . enron should be able to manage through this challenging environment , ultimately recognizing the values of the company ' s core businesses .
in october , enron fully drew down the bulk of its committed bank facilities and paid down outstanding commercial paper , leaving it approximately $ 1 billion of cash on hand to support normal business activities . in addition , the company is in the process of executing a new $ 1 billion secured bank facility that pledges the assets of northern natural and transwestern . unsecured creditors are structurally subordinated to the secured lenders reducing asset coverage . while its current cash position appears adequate , securing additional capital sources through asset sales or raising additional capital would be a favorable development .
a management priority is debt reduction and the exiting of problem businesses . clearly , these actions , if completed as envisioned will reduce risk and improve the company ' s credit profile . however , the targeted transactions have varying degrees of execution risk , particularly the divestiture of assets in emerging market countries . an additional uncertainty is the securities and exchange commission ' s ( sec ) investigation of certain enron sponsored partnerships . the outcome and potential impact of the sec activity is difficult to predict .
the largest announced transaction is the sale of portland general electric co . ( pge ) to northwest natural gas co . the sale appears to be moving ahead as planned and has the favorable support of key local interests . however , the transaction is not expected to close for another year .
enron ' s core businesses have continued to generate strong , predictable performance and have significant value . prospectively , operations at enron ' s domestic regulated pipelines would be less affected by any lingering uncertainty at enron . also , pge is expected to generate positive and predictable earnings and cash flow over the next year . combined , the pipelines and pge generate nearly 25 % of ebitda . wholesale and retail energy services segments have also consistently reported predictable and growing returns . specifically , commodity marketing and trading activities , which comprise the most profitable and largest part of wholesale operations , have generated steady volume growth and stable unit margins . however , if enron were unable to maintain the support of its counterparties or exhibited diminished financial flexibility , these businesses would be harmed .
contact : fitch , new york ralph pellecchia , 212 / 908 - 0586 robert grossman , 212 / 908 - 0535 hugh welton , 212 / 908 - 0746
11 : 13 est november 5 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron sr . unsecured debt cut to triple - b - minus by fitch
11 / 05 / 2001
capital markets report
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - ( dow jones ) - fitch downgraded enron corp . ' s ( ene ) senior unsecured debt ratings monday to triple - b - minus from triple - b - plus , putting the houston energy and trading giant ' s credit rating just one notch above noninvestment - grade or junk status .
in its action , the rating agency was more aggressive than moody ' s investors service and standard joe . niedzielski @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : u . s . stocks seen higher at open on rate cut optimism .
by chelsea emery
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 5 ( reuters ) - stocks are seen climbing at the open of trading on monday , as wall street looks for another half - point interest - rate cut on tuesday to help put the lagging economy back on track and boost slumping corporate profits .
equities are getting an additional boost from the treasury ' s decision last week to stop selling 30 - year bonds , sending cash flowing out of bonds and into stocks , traders said .
the gain in futures is " the half - point talking , " said brian finnerty , co - head of capital markets at c . e . unterberg towbin . " the cut continues the aggressive moves on the part of the fed , and it comes on top of a huge move by the treasury . the treasury did more in one fell swoop last week than the fed ' s done all year . "
technology stocks rose in early trading , as investors geared up for cisco systems inc . ' s quarterly results after exchanges close . analysts said the networking gear maker is likely to signal lagging sales are near a turnaround .
december futures for the standard & poor ' s 500 index climbed 8 points , or 0 . 7 percent , to 1 , 097 . 50 , while december futures for the nasdaq composite index rose 21 points , or 1 . 5 percent , to 1 , 454 . 50 . the indicative dow jones index , which represents a basket of dow stocks trading in europe , slipped 2 . 4 points , or 0 . 02 percent .
the u . s . federal reserve is widely expected to cut interest rates for a 10 th time this year at its meeting on tuesday , to help jump - start the lagging economy . lower interest rates cut borrowing costs and can spur business development .
blue chips rallied on friday , helping the broader market eke out gains , as investors shrugged off a report of the biggest u . s . job losses in more than two decades in october to bet on an economic recovery next year .
" any kind of bad news hasn ' t been able to hold the market down , " said bob basel , a listed trader with salomon smith barney .
cisco rose to $ 17 . 80 on electronic trading system instinet , up from its close of $ 17 . 26 . the company , which makes networking gear that helps power the internet , is expected to report fiscal first - quarter results after exchanges close . cisco is likely to signal sales are near a rebound , indicating the lagging tech industry has reached its low point and will begin to rebound soon , analysts and investors said .
microsoft corp . rose to $ 61 . 74 from its friday close of $ 61 . 40 . microsoft and the justice department reached a settlement agreement last week . still , state antitrust enforcers have found what they say are serious flaws in the settlement , and the two sides may not be able to sign the deal in its current form , the wall street journal reported in its online edition on monday . the european union said on monday its probe of microsoft continues despite the settlement .
enron corp . , the struggling energy giant , rose to $ 11 . 80 on instinet , up from its close of $ 11 . 27 on friday . royal dutch / shell group may mount an $ 11 billion bid for enron , the uk ' s independent paper reported on sunday .
enron lined up $ 1 billion of new credit last week , but it still suffered a second credit rating cut amid concerns about questionable financial transactions that have triggered an investigation by the u . s . securities and exchange commission .
pixar animation studios inc . jumped to $ 37 . 25 from a friday close of $ 36 . 70 . pixar and walt disney co . scored a monstrous opening with their latest family cartoon " monsters , inc . , " scaring up $ 63 . 5 million in ticket sales in its first three days , according to studio estimates issued on sunday .
baxter international inc . fell to $ 47 . 60 on instinet from its close of $ 49 after it said preliminary tests show a processing fluid used in its manufacturing operations in sweden may have played a role in kidney patient deaths linked to dialysis machines .
baxter said it plans to permanently discontinue making the product and warned it will take a fourth - quarter charge to cover costs related to the product cancellation .
european markets gained on monday , led by technology and auto stocks . solid wall street futures and the prospect of more interest rate cuts later this week buoyed sentiment , traders said . wall street ' s resiliency on friday , when investors looked beyond poor payrolls numbers and bet on a recovery next year , also helped steady european nerves .
the ftse eurotop 300 index was up 1 . 5 percent and the euro stoxx 50 index rose 1 . 8 percent . technology and auto stocks were the strongest as players funneled cash back into sectors which fell hard after the sept . 11 attacks in the united states .
tokyo stocks inched higher in extremely thin trade on monday after gains in sony corp and other select blue - chip stocks buoyed a market still wary of dwindling earnings and a bleak outlook for the u . s . economy .
the benchmark nikkei average climbed 0 . 61 percent or 63 . 76 points to 10 , 447 . 54 , landing in positive turf for the second straight session .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : british power trading slow , prompt lifted early .
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 5 ( reuters ) - british electricity trading was slow on monday , with traders saying prompt prices were ending broadly unchanged after a higher start in part because of a band of colder weather affecting much of the country .
" it ' s a fairly quiet market , still lacking liquidity , " said one trader , referring to the reluctance of some companies to deal with enron .
in the u . s . the securities and exchange commision is investigating substantial losses at enron relating to a private equity operation run by the group ' s former chief financial officer .
traders said the prompt market opened strong with day - ahead baseload lifted at 20 pounds a megawatt hour .
but the early strength evaporated during the day and in late trade the contract was down to about 17 pounds .
december baseload gained early support from day - ahead . it was finishing the day at about 18 . 40 pounds from a low of 18 . 34 pounds .
ql 01 baseload was seen as high as 19 . 45 pounds before it fell to 19 . 30 / 19 . 35 pounds in the afternoon .
summer 02 baseload was a touch stronger at 17 . 25 pounds while winter 02 was assessed at 19 . 25 pounds .
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron mentions
usa : update 1 - fitch cuts ratings on enron debt .
reuters english news service - 11 / 05 / 01
fitch downgrades enron to ` bbb - ' ; maintains rtg watch negative
business wire - 11 / 05 / 01
enron sr . unsecured debt cut to triple - b - minus by fitch
capital markets report - 11 / 05 / 01
usa : u . s . stocks seen higher at open on rate cut optimism .
reuters english news service - 11 / 05 / 01
uk : british power trading slow , prompt lifted early .
reuters english news service - 11 / 05 / 01
usa : update 1 - fitch cuts ratings on enron debt .
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 5 ( reuters ) - fitch on monday cut its ratings on the debt of embattled energy trader enron corp . and warned that it may cut the ratings again if the company does not reduce its debts , if its trading business deteriorates or if charges exceed present estimates .
" today ' s rating action reflects the difficulties enron faces in managing its liquidity position in the face of an erosion in investor confidence , " fitch said .
fitch cut houston - based enron ' s senior unsecured debt to " bbb - minus , " one notch above junk , from " bbb - plus , " its subordinated debt to " bb " from " bbb , " and its commercial paper to " f 3 " from " f 2 . " the rating agency also downgraded enron ' s preferred stock to " b - plus " from " bbb - minus . "
fitch said reducing debt and exiting problem businesses are a management priority , and if enron is successful , the company ' s credit profile will improve . " however , the targeted transactions have varying degrees of execution risk , particularly the divestiture of assets in emerging - market countries , " fitch said .
fitch ' s cut follows downgrades last week by moody ' s investors service and standard & poor ' s . enron ' s shares have lost more than 65 percent in less than a month amid concerns about financial practices that triggered an investigation by the u . s . securities and exchange commission .
s & p last thursday cut enron ' s corporate credit and senior unsecured debt ratings to " bbb , " two notches above junk status , from " bbb - plus . " moody ' s investors service last monday cut enron ' s senior unsecured debt to " baa 2 , " two notches above junk , from " baal . "
downgrades could make it tougher for enron to issue debt and run its day - to - day business if fellow marketers and traders demand more collateral .
enron lined up $ 1 billion of new credit last week but may still have to sell assets to head off a credit squeeze and restore investor confidence , according to investment bankers .
in its third - quarter results report last month , enron said it expected over a billion dollars of write - offs related to soured investments . it also announced an extra $ 1 . 2 billion write - down of shareholder equity related to investments that were not recorded on its balance sheet .
enron ' s 6 . 4 percent notes due in 2006 , bid at about 80 cents on the dollar a week ago , were bid at 73 cents on the dollar on monday , a strategist said .
enron shares were up 40 cents , or 3 . 55 percent , at $ 11 . 67 in midday trade on the new york stock exchange . the shares have been in free - fall for two weeks .
copyright ? 2000 dow jones maintains rtg watch negative
11 / 05 / 2001
business wire
( copyright ( c ) 2001 , business wire )
new york - - ( business wire ) - - nov . 5 , 2001 - - fitch downgrades enron ' s outstanding securities as follows : senior unsecured debt to ` bbb - ' from ` bbb + ' ; subordinated debt to ` bb ` from ` bbb ' ; and preferred stock to ` b + ' from ` bbb - ` . enron ' s commercial paper has been downgraded to ` f 3 ' from ` f 2 ' . the senior unsecured debt ratings of its pipeline subsidiaries , northern natural gas co . and transwestern pipeline co . , are lowered to ` bbb - ' from ` a - ` . all the above securities remain on rating watch negative status . fitch would consider further downgrades if enron were unable to make progress in reducing debt , if its wholesale marketing and trading business were to show signs of material deterioration , or if expenses and charges related to the disposition of non - core businesses and investments exceed present estimations .
today ' s rating action reflects the difficulties enron faces in managing its liquidity position in the face of an erosion in investor confidence . this follows the recognition of a substantial diminution in value of its global merchant investments , which were partly financed with an aggressive use of off - balance sheet vehicles . enron should be able to manage through this challenging environment , ultimately recognizing the values of the company ' s core businesses .
in october , enron fully drew down the bulk of its committed bank facilities and paid down outstanding commercial paper , leaving it approximately $ 1 billion of cash on hand to support normal business activities . in addition , the company is in the process of executing a new $ 1 billion secured bank facility that pledges the assets of northern natural and transwestern . unsecured creditors are structurally subordinated to the secured lenders reducing asset coverage . while its current cash position appears adequate , securing additional capital sources through asset sales or raising additional capital would be a favorable development .
a management priority is debt reduction and the exiting of problem businesses . clearly , these actions , if completed as envisioned will reduce risk and improve the company ' s credit profile . however , the targeted transactions have varying degrees of execution risk , particularly the divestiture of assets in emerging market countries . an additional uncertainty is the securities and exchange commission ' s ( sec ) investigation of certain enron sponsored partnerships . the outcome and potential impact of the sec activity is difficult to predict .
the largest announced transaction is the sale of portland general electric co . ( pge ) to northwest natural gas co . the sale appears to be moving ahead as planned and has the favorable support of key local interests . however , the transaction is not expected to close for another year .
enron ' s core businesses have continued to generate strong , predictable performance and have significant value . prospectively , operations at enron ' s domestic regulated pipelines would be less affected by any lingering uncertainty at enron . also , pge is expected to generate positive and predictable earnings and cash flow over the next year . combined , the pipelines and pge generate nearly 25 % of ebitda . wholesale and retail energy services segments have also consistently reported predictable and growing returns . specifically , commodity marketing and trading activities , which comprise the most profitable and largest part of wholesale operations , have generated steady volume growth and stable unit margins . however , if enron were unable to maintain the support of its counterparties or exhibited diminished financial flexibility , these businesses would be harmed .
contact : fitch , new york ralph pellecchia , 212 / 908 - 0586 robert grossman , 212 / 908 - 0535 hugh welton , 212 / 908 - 0746
11 : 13 est november 5 , 2001
copyright ? 2000 dow jones & company , inc . all rights reserved .
enron sr . unsecured debt cut to triple - b - minus by fitch
11 / 05 / 2001
capital markets report
( copyright ( c ) 2001 , dow jones & company , inc . )
new york - ( dow jones ) - fitch downgraded enron corp . ' s ( ene ) senior unsecured debt ratings monday to triple - b - minus from triple - b - plus , putting the houston energy and trading giant ' s credit rating just one notch above noninvestment - grade or junk status .
in its action , the rating agency was more aggressive than moody ' s investors service and standard joe . niedzielski @ dowjones . com
copyright ? 2000 dow jones & company , inc . all rights reserved .
usa : u . s . stocks seen higher at open on rate cut optimism .
by chelsea emery
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
new york , nov 5 ( reuters ) - stocks are seen climbing at the open of trading on monday , as wall street looks for another half - point interest - rate cut on tuesday to help put the lagging economy back on track and boost slumping corporate profits .
equities are getting an additional boost from the treasury ' s decision last week to stop selling 30 - year bonds , sending cash flowing out of bonds and into stocks , traders said .
the gain in futures is " the half - point talking , " said brian finnerty , co - head of capital markets at c . e . unterberg towbin . " the cut continues the aggressive moves on the part of the fed , and it comes on top of a huge move by the treasury . the treasury did more in one fell swoop last week than the fed ' s done all year . "
technology stocks rose in early trading , as investors geared up for cisco systems inc . ' s quarterly results after exchanges close . analysts said the networking gear maker is likely to signal lagging sales are near a turnaround .
december futures for the standard & poor ' s 500 index climbed 8 points , or 0 . 7 percent , to 1 , 097 . 50 , while december futures for the nasdaq composite index rose 21 points , or 1 . 5 percent , to 1 , 454 . 50 . the indicative dow jones index , which represents a basket of dow stocks trading in europe , slipped 2 . 4 points , or 0 . 02 percent .
the u . s . federal reserve is widely expected to cut interest rates for a 10 th time this year at its meeting on tuesday , to help jump - start the lagging economy . lower interest rates cut borrowing costs and can spur business development .
blue chips rallied on friday , helping the broader market eke out gains , as investors shrugged off a report of the biggest u . s . job losses in more than two decades in october to bet on an economic recovery next year .
" any kind of bad news hasn ' t been able to hold the market down , " said bob basel , a listed trader with salomon smith barney .
cisco rose to $ 17 . 80 on electronic trading system instinet , up from its close of $ 17 . 26 . the company , which makes networking gear that helps power the internet , is expected to report fiscal first - quarter results after exchanges close . cisco is likely to signal sales are near a rebound , indicating the lagging tech industry has reached its low point and will begin to rebound soon , analysts and investors said .
microsoft corp . rose to $ 61 . 74 from its friday close of $ 61 . 40 . microsoft and the justice department reached a settlement agreement last week . still , state antitrust enforcers have found what they say are serious flaws in the settlement , and the two sides may not be able to sign the deal in its current form , the wall street journal reported in its online edition on monday . the european union said on monday its probe of microsoft continues despite the settlement .
enron corp . , the struggling energy giant , rose to $ 11 . 80 on instinet , up from its close of $ 11 . 27 on friday . royal dutch / shell group may mount an $ 11 billion bid for enron , the uk ' s independent paper reported on sunday .
enron lined up $ 1 billion of new credit last week , but it still suffered a second credit rating cut amid concerns about questionable financial transactions that have triggered an investigation by the u . s . securities and exchange commission .
pixar animation studios inc . jumped to $ 37 . 25 from a friday close of $ 36 . 70 . pixar and walt disney co . scored a monstrous opening with their latest family cartoon " monsters , inc . , " scaring up $ 63 . 5 million in ticket sales in its first three days , according to studio estimates issued on sunday .
baxter international inc . fell to $ 47 . 60 on instinet from its close of $ 49 after it said preliminary tests show a processing fluid used in its manufacturing operations in sweden may have played a role in kidney patient deaths linked to dialysis machines .
baxter said it plans to permanently discontinue making the product and warned it will take a fourth - quarter charge to cover costs related to the product cancellation .
european markets gained on monday , led by technology and auto stocks . solid wall street futures and the prospect of more interest rate cuts later this week buoyed sentiment , traders said . wall street ' s resiliency on friday , when investors looked beyond poor payrolls numbers and bet on a recovery next year , also helped steady european nerves .
the ftse eurotop 300 index was up 1 . 5 percent and the euro stoxx 50 index rose 1 . 8 percent . technology and auto stocks were the strongest as players funneled cash back into sectors which fell hard after the sept . 11 attacks in the united states .
tokyo stocks inched higher in extremely thin trade on monday after gains in sony corp and other select blue - chip stocks buoyed a market still wary of dwindling earnings and a bleak outlook for the u . s . economy .
the benchmark nikkei average climbed 0 . 61 percent or 63 . 76 points to 10 , 447 . 54 , landing in positive turf for the second straight session .
copyright ? 2000 dow jones & company , inc . all rights reserved .
uk : british power trading slow , prompt lifted early .
11 / 05 / 2001
reuters english news service
( c ) reuters limited 2001 .
london , nov 5 ( reuters ) - british electricity trading was slow on monday , with traders saying prompt prices were ending broadly unchanged after a higher start in part because of a band of colder weather affecting much of the country .
" it ' s a fairly quiet market , still lacking liquidity , " said one trader , referring to the reluctance of some companies to deal with enron .
in the u . s . the securities and exchange commision is investigating substantial losses at enron relating to a private equity operation run by the group ' s former chief financial officer .
traders said the prompt market opened strong with day - ahead baseload lifted at 20 pounds a megawatt hour .
but the early strength evaporated during the day and in late trade the contract was down to about 17 pounds .
december baseload gained early support from day - ahead . it was finishing the day at about 18 . 40 pounds from a low of 18 . 34 pounds .
ql 01 baseload was seen as high as 19 . 45 pounds before it fell to 19 . 30 / 19 . 35 pounds in the afternoon .
summer 02 baseload was a touch stronger at 17 . 25 pounds while winter 02 was assessed at 19 . 25 pounds .
copyright ? 2000 dow jones & company , inc . all rights reserved .