Downgraded

Just as Tropical Storm Bret was being downgraded to a drenchingrain event for South Texas the natural gas futures market wasundergoing a downgrading of its own yesterday, as traders tookprofits in a mid-morning sell-off. However, by mid-afternoon theNational Hurricane Center had anointed the latest two tropicaldepressions-Dennis and Emily-into tropical storms and that wasenough to convince those sellers to become buyers. That was almostenough to recoup the earlier price decline, leaving the Septembercontract to finish the session with only a half-cent loss to$3.059.

For those interested in the ratings game, this past week was nota good one for natural gas companies as Moody’s Investors Servicedowngraded one natural gas company and Standard & Poor’s puttwo others on CreditWatch with negative implications. All threeremain in the rarefied upper ranks by virtue of the guaranteedreturns that come with their utility operations. But it’s theirincreasing unregulated business that’s making the ratings agenciesnervous.