Investors

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.

Moody’s Investors Service on Thursday downgraded the debt of AES Corp., citing concerns about smaller future dividends from subsidiaries, weaker power prices and “deteriorating conditions” in international markets were the company holds substantial generation interests. The downgrade affects about $20 billion of debt securities, and Moody’s warned that AES will remain on review for another possible downgrade.

Faced with mounting concerns from investors and credit-rating agencies, energy giant Williams Cos. announced a $3 billion-plus plan last Tuesday to improve the company’s flailing balance sheet over the next 12 months. However, Williams’ strategy drew mixed reactions from the major ratings’ agencies and failed to stem its stock losses.

As an outgrowth of merchant power generation’s shrinking margins and spark spreads, Moody’s Investors Service last Wednesday changed the rating outlook from stable to negative on debt securities of PG&E Corp.’s National Energy Group (NEG). The move reflects “the growing reliance on less predictable cash flows coupled with the weak marketplace for merchant generation,” Moody’s said in announcing the change.

Wall Street analysts told a Senate panel Wednesday that the judgments made by a majority of those covering Enron Corp. to continue recommending the stock as a “buy” through mid-November 2001 were based on publicly available information that ultimately proved to be wrong. And despite supposed conflicts of interests within the analysts’ companies — many of which were lending money to Enron at the same time their analysts were recommending buys — the analysts testified that the “Chinese Wall” maintained by research and investment units prevented their judgment from being swayed.

Wall Street analysts told a Senate panel Wednesday that the judgments made by a majority of those covering Enron Corp. to continue recommending the stock as a “buy” through mid-November 2001 were based on publicly available information that ultimately proved to be wrong. And despite supposed conflicts of interests within the analysts’ companies — many of which were lending money to Enron at the same time their analysts were recommending buys — the analysts testified that the “Chinese Wall” maintained by research and investment units prevented their judgment from being swayed.

Moody’s Investors Service Wednesday confirmed the ratings of The Williams Companies, Inc. at Baa2 senior unsecured and its subsidiaries but changed the outlook to negative from stable. The ratings agency cited the potential bankruptcy and contingent liabilities of the company’s former subsidiary, Williams Communications Group (WCG), but noted Williams is negotiating to take over payments for WCG debt and “eliminate certain trigger events.”

Despite the recent topsy-turvy events that have plagued the energy industry over the past couple of months, AEC’s board of directors said Monday that it has approved the company’s 2002 capital budget and confirmed that AEC is on course to achieve its strategic growth plans through 2004.

Adding insult to injury, Enron Corp.’s bankruptcy may complicate its anticipated sale of $800 million in assets that were already on the books because of due diligence issues, the company disclosed Monday. The asset sales, slated to be completed by the end of this month, include oil and natural gas fields in India, Brazilian gas utilities and its stake in a Puerto Rican power plant and liquefied natural gas terminal. Enron remains optimistic, however, that the sales will close, according to a spokesman.