Thank you for keeping us in the loop on this.  D&B data will become one of 
our most important sources.  As you suggest, the intent is to use this data 
along with other available date to generate a price for credit.  The price 
will be published externally (likely for a fee and as a free service) via the 
web or via automated processes.  

Option 3 appears to be the best solution for us given our desire for as up to 
date data as possible.  Stuart is working with the credit team to define 
additional data elements but the credit score and financial score are likely 
what we are looking for.  Alternatively, if it is possible to obtain the 
actual data that is used to generate the score that would allow us to 
generate our own score in addition to D&B's.  We will need the Global Failure 
Score as well.  Currently we are active in Europe as well as the US and 
expect to move towards Asia and Austrailia over time.  Hopefully, this data 
is available via D&B Connect.

Another consideration is the term of contract.  We would likely prefer a 
longer term contract so that if they decide they don't like what we are doing 
with the data, we cannot be cut off.  Does it make sense from your 
perspective to approach D&B to be our long term, strategic providor of 
customer data.  This would likely make their deal maker look good in his 
boss's eyes, give you lot's of negotiating ability and give a us the long 
term preferential contract that we are looking for.

Let's discuss further.

bryan





Mary Solmonson
05/05/2000 19:25
To: John Sherriff/LON/ECT@ECT, Bryan Seyfried/LON/ECT@ECT
cc: Philippe A Bibi/HOU/ECT@ECT, Sally Beck/HOU/ECT@ECT, Stuart 
Ffoulkes/LON/ECT@ECT 

Subject: Dun & Bradstreet Info for Credit Trading

I have received preliminary information from D&B.  I think several 
issues/questions have been raised that if explored, could result in a better 
solution for the money.  

Option 1
The update frequency for our current file can be improved from quarterly to 
monthly for a cost of $87,000 (USD) through March, 2001.

Option 2
I wasn't sure what specific data in the file you might be interested in.  If 
you are particularly interested in the Financial Stress Score and Credit 
Score, for example, there are multiple alternatives :
 
 2a) Keep quartlery refresh of base data (party name, etc) and refresh scores 
that are added/changed on a monthly basis.  Cost - $1.17(USD) per 
record.          Note that there are 575,000 records in the file currently 
with financial and credit scores, making this potentially a very expensive 
alternative 
        (575,000 X 1.17=$ 672,750).

 2b) Batch or FTP updates of the financial and stress scores can only be 
provided monthly.  D&B is working on a solution that would provide a 
weekly         update to their customers in a batch or FTP manner, but has 
not committed to when this will be ready.  Therefore, if more timely updates 
than monthly                          are desired, it is also possible to 
transactionally access records one at a time using D&B's software.  The cost 
for this is extremely high at $10.52         (USD) per score. 

Option 3
D&B Connect Product.
 D&B Connect is a tool set of matching software, an externally validated 
reference file, credit and marketing information, and D&B services that 
enables the  most effective integration of customer information and 
third-party information with D&B information.  Only this type of process and 
information integration  capability can facilitate and ensure accurate 
identification, linkage and maintenance of your customer's complete 
relationship.   In addition, D&B Connect  assures organizations of 
referential integrity by providing an automated and electronic link to D&B so 
that the most recent D&B information is always  transmitted to your 
organization and updated within your local D&B Connect Reference File.  D&B 
Connect is scalable.  

 Cost Typically ranging from
 * Customer Access Module (CAM) Batch- - $25,000
 * CAM Online - $50,000
 * Full Information Integrator - $350,000 + data

With more specifics as to your needs, this option should perhaps be pursued.


Questions/Issues

1) D&B had questions regarding the use of their data and whether Enron 
customers would be offered this information for a fee or free.  I explained 
that I  did not feel the data would be offered directly to Enron customers, 
but that it would be used to support analysis that would be available 
externally via web  site, etc.  All pricing above is based upon this 
understanding.  If I have not portrayed the usage correctly, it will be 
imperative to get a better understanding  before final pricing can be 
negotiated.

2)  Are there specific data elements that you are interested in ?  
Alternatives may vary by data element.  Financial Stress Score and Credit 
Score reference  above were explored as an example.

3)  What is timeframe for needing a solution ?

4)  Financial Stress Score and Credit Score are only available on U.S. 
companies.  A comparable measure - Global Failure Score (the liklihood of 
default or  bankruptcy)  is available for international companies.  This 
rating score however, is NOT currently available via a batch or FTP manner.  
This could result  in additional cost if we wish to pursue obtaining this 
score in a batch manner.

5)  Pricing also varies whether the information is to be used for credit 
analysis or risk management decisions versus for marketing purposes.  This is 
probably  negotiable as the data is the same.  The thought process is that if 
the repository is used for credit or risk decisions, D&B will see decreased 
usage and  revenue on a transactional basis by the credit departments.

 If you would like me to follow up further, please give me a call at 
713-853-6079.