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