Moody's Investors Service downgraded Enron Corp.'s long-term debt by one
notch this morning, a move sure to hamper the company's efforts to restore
investor and client confidence.
Shares of Enron fell to seven-year lows this morning, losing $1.51 to trade
at $13.89 in mid-day trading. In the past two weeks the stock has lost more
than half its value, dropping from as high as $35 at the beginning of
October.
Enron's rating was lowered by the bond rating firm from Baa1 to Baa2, where
it will remain on review for further downgrade, Moody's said in a statement.
The firm also placed the Houston company's Prime-2 rating for commercial
paper on review for downgrade.
The Baa2 rating is just two notches above what is commonly called "junk
bonds."