Downgraded

Joining the ranks of forecasters who are slashing their 2006 Atlantic hurricane activity predictions, Andover, MA-based WSI Corp. downgraded its outlook Wednesday for the second time in two months. WSI said it now expects the tropical season to have 13 named storms, six hurricanes and three intense hurricanes (Category 3 or greater).

September natural gas futures opened significantly lower Monday morning as Hurricane Ernesto was downgraded to a tropical storm and forecasts were calling for a more northerly trajectory taking it away from Gulf of Mexico oil and natural gas fields. Maintaining its overnight losses throughout Monday’s session, the September contract, one day ahead of expiration, closed at $6.472, down 68.5 cents from Friday.

Only one energy company, Empire District Electric Co. of Joplin, MO, had its credit ratings downgraded during the last quarter, while three other major energy companies were upgraded, Standard & Poor’s Ratings Services (S&P) said Monday in a second quarter report. The ratings firm called it the “strongest surge” in years.

Moody’s Investors Service downgraded the long-term debt ratings of Peoples Energy Corp. of Chicago and its utility subsidiaries, citing the continuing decline in profitability of its core gas distribution business (LDCs) and its increased focus on riskier gas exploration and production.

After completing its review of Oneok’s $1.35 billion purchase of Koch’s natural gas liquids (NGL) assets, Moody’s Investors Service downgraded the ratings of Oneok’s debt to Baa2 from Baa1. Moody’s said that $2 billion of debt securities are affected. The rating outlook is stable.

J.P. Morgan Securities downgraded El Paso Corp. to “underweight” from “neutral” last week, citing “significant concerns” regarding its oil and natural gas production. The downgrade sent El Paso’s shares tumbling nearly a dollar, or 8.23% by market close.

J.P. Morgan Securities downgraded El Paso Corp. to “underweight” from “neutral” on Monday, citing “significant concerns” regarding its oil and natural gas production. The downgrade sent El Paso’s shares tumbling nearly a dollar, or 8.23% by market close.

J.P. Morgan Securities downgraded El Paso Corp. to “underweight” from “neutral” on Monday, citing “significant concerns” regarding its oil and natural gas production. The downgrade sent El Paso’s shares tumbling nearly a dollar, or 8.23% by market close.

Banc of America Securities (BOA) downgraded Dynegy Inc. to “sell” from “neutral” last week because of questions about the company’s future cash-flow generation. On the day of the downgrade Wednesday, more than 10 million Dynegy shares exchanged hands, and the stock fell more than 5%, falling slightly more through the rest of the week to close at around $4.85.