Poor

Standard & Poor’s said last week that 2001 set a record for corporate defaults, with 211 companies worldwide — 162 in the United States — defaulting on $115.4 billion worth of debt. The old record was set a year earlier, when 132 companies defaulted on $42.3 billion of debt, said the credit ratings agency. S&P expects the U.S. economy to bottom out in the first quarter, with the default rate peaking near 11% by this summer and then “trailing off” by the end of 2002.

Standard & Poor’s said Monday that 2001 set a record for corporate defaults, with 211 companies worldwide — 162 in the United States — defaulting on $115.4 billion worth of debt. The old record was set a year earlier, when 132 companies defaulted on $42.3 billion of debt, said the credit ratings agency. S&P expects the U.S. economy to bottom out in the first quarter, with the default rate peaking near 11% by this summer and then “trailing off” by the end of 2002.

A long-time dream of bringing natural gas to energy-poor North Baja in Mexico’s burgeoning industrial and population centers along the U.S. border faces one last environmental hurdle on the U.S. side that backers are optimistic will be cleared this month with the release of an environmental impact statement (EIS) from federal regulators. Without that hurdle being cleared, however, an already tight timetable and other environmental concerns related to the timing of the pipeline’s construction schedule might prevent initial supplies from flowing this coming summer.

A long-time dream of bringing natural gas to energy-poor North Baja in Mexico’s burgeoning industrial and population centers along the U.S. border faces one last environmental hurdle on the U.S. side that backers are optimistic will be cleared still this month with the release of an environmental impact statement (EIS) from federal regulators. Without that hurdle being cleared, however, an already tight timetable and other environmental concerns related to the timing of the pipeline’s construction schedule might prevent initial supplies from flowing this coming summer.

Although quarterly net income for AGL Resources declined sharply from $17.4 million last year to $4.8 million for the quarter ending Sept. 30, the company said it posted record earnings for its fiscal year ending Sept. 30. Net income for the year was $88.9 million ($1.63 per share) compared with net income of $71.1 million ($1.29 per share) for the prior fiscal year.

Although quarterly net income for AGL Resources declined sharply from $17.4 million last year to $4.8 million for the quarter ending Sept. 30, the company said it posted record earnings for its fiscal year ending Sept. 30. Net income for the year was $88.9 million ($1.63 per share) compared with net income of $71.1 million ($1.29 per share) for the prior fiscal year.

Citing a host of poor fundamentals for the natural gas market, the Energy Information Administration (EIA) last week projected that spot gas prices will drop 62% to an average of $2.21/Mcf this winter from $5.78/Mcf a year ago. It said it doesn’t see spot prices rising above the $2.50/Mcf level anytime during the fourth quarter and 2002. The EIA now estimates the average spot price for 2001 will be about $4/Mcf.

Citing a host of poor fundamentals for the natural gas market, the Energy Information Administration (EIA) projects that spot gas prices will drop 62% to an average of $2.21/Mcf this winter from $5.78/Mcf last winter. It said it doesn’t see spot prices rising above the $2.50/Mcf level anytime during the fourth quarter and 2002. The EIA now estimates the average spot price for 2001 will be about $4/Mcf.

Standard & Poor’s held a conference call Wednesday todeclare that Pacific Gas & Electric Co. and Southern CaliforniaEdison risk default and bankruptcy within weeks and are likely tosee their credit ratings fall to junk grades if they don’t get helpfrom regulators within 24 to 48 hours.