Agencies

The common stock price of El Paso Corp. took a massive hit last week, as the ratings agencies focused on Monday’s adverse FERC administrative law judge decision (see related story). Standard & Poor’s placed El Paso and its affiliates on CreditWatch with negative implications, and Moody’s also initiated a review for possible downgrade.

The common stock price of El Paso Corp. took a massive hit again Tuesday, as the ratings agencies focused on the adverse FERC administrative law judge decision of Monday (see Daily GPI, Sept. 24). Standard & Poor’s placed El Paso and its affiliates on CreditWatch with negative implications, and Moody’s also initiated a review for possible downgrade.

Seeking to reassure investors and credit rating agencies, Mirant on Thursday said that its liquidity position is strong, standing at approximately $1.7 billion. The company noted that the figure includes proceeds from its recently completed $370 million convertible securities offering.

Looking to shore-up investor support and appease credit rating agencies, El Paso Corp. last week reiterated its restructuring commitment, along with its mission of focusing on its global liquefied natural gas (LNG) and petroleum business (see NGI, June 3).

Standard & Poor’s and Fitch Ratings last week both held to a negative credit watch for CMS Energy Corp. and its subsidiaries, Consumers Energy Co. and CMS Panhandle Pipeline Cos., after the company was able to extend its $450 million revolving credit facility another month. The Dearborn, MI-based company has about $8 billion in debt.

Williams ended a rocky week Friday with two major credit ratings agencies split on how to evaluate its obligations to its spin-off, Williams Communications Group (WCG), and at least five class action lawsuits filed claiming it misrepresented those obligations. Late Friday Moody’s Investors Service confirmed the ratings of the parent company (WMB, Baa2 senior unsecured) and its subsidiaries. Moody’s also confirmed the Baa3 debt rating of Williams Communications Group (WCG) Note Trust, a third-party special purpose vehicle to which Williams has a contingent obligation. In addition Moody’s said the rating outlook for both entities are stable.

In the several documents filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday, Enron Corp. spelled out specifically the terms of its $23 billion merger with Dynegy Corp., noting in one filing that until the merger closes as expected in the third quarter of 2002, “we will continue to deal with one another on a commercial level as competitors, just as we have done in the past,” including its operation of EnronOnline, the leading electronic trading platform in the world.

The $19.1 billion spending bill for the Interior Department and related agencies that was signed by President Bush last week has left some offshore industry officials optimistic that the administration may consider expanded leasing in the eastern Gulf of Mexico (GOM) in the future.

The $19.1 billion spending bill for the Interior Department and related agencies that was signed by President Bush Monday has left some offshore industry officials optimistic that the administration may consider expanded leasing in the eastern Gulf of Mexico (GOM) in the future.