### Comment:
Yup, what this guy said.  
  
 Part of the reason Enron’s death spiral was so quick was they had SO MANY different contracts that depended on not being downgraded.  I haven’t seen explicit confirmation that Skilling didn’t try blowing a few of the people at Moody’s to preserve their rating.  
  
 Once it hit junk, alllllllll those provisions came online and they were fucked.

### REPLY:
Basically any contract in energy (presumably most industries) won't give unsecured credit to a counterparty if they're junk status.  If you owe a bunch of people money and then one day they all simultaneously call you to get collateral on the same day that your ability to borrow basically went to zero you're going to have a bad day.

### END.