-----Original Message-----
From: 	"ANDREW PRATT, BLOOMBERG/ NEWSROOM:" <APRATT@bloomberg.net>@ENRON  
Sent:	Monday, October 29, 2001 9:25 AM
To:	Denne, Karen
Subject:	(MDY ) MOODY'S PLACES ALL L-T DEBT OF ENRON CORP ON REV FOR

this is moody'srelease




MOODY'S PLACES ALL L-T DEBT OF ENRON CORP ON REV FOR POSS DWN
2001-10-29 10:06 (New York)



New York                      New York
John Diaz                     Stephen G. Moore
Managing Director             VP - Senior Credit Officer
Corporate Finance             Corporate Finance
Moody's Investors Service     Moody's Investors Service
JOURNALISTS: (215) 967-6233   JOURNALISTS: (215) 967-6233
SUBSCRIBERS: (215) 967-6233   SUBSCRIBERS: (215) 967-6233



MOODY'S PLACES ALL LONG TERM DEBT OBLIGATIONS OF ENRON CORP ON REVIEW FOR
DOWNGRADE; SENIOR UNSECURED AT Baa1

Approximately $ 13 Billion of Debt Securities Affected.


New York, October 29, 2001 -- Moody's Investors Service placed all the
long term debt obligations of Enron on review for downgrade following the
announcement by Enron of significant write-downs and charges, reflecting
substantially reduced valuations in several of its businesses. These
actions affect Enron's broadband operations, its merchant portfolio and
the Azurix water company holdings. The company's Prime-2 rating for
commercial paper is confirmed.

Moody's has previously commented on the challenges impacting a number of
Enron's businesses but the magnitude of the announced charges will reduce
Enron's equity base and increase nominal financial leverage to somewhat
over 50.0% while slashing earnings. The company's previously announced
sale of Portland General, however, will result in cash proceeds
approximating $1.8 billion which management is earmarking for debt
reduction. In addition, the sale will remove approximately $1 billion of
debt obligations from Enron's balance sheet. Moody's notes that, while
this transaction will go a long way to help restore Enron's balance
sheet, it requires regulatory approval and is likely to take up to a year
to complete.

In its review, Moody's will focus on Enron's strategic direction and in
particular on the earnings and cash flow outlook for its core gas and
power wholesale businesses. We will also review management's progress in
dealing with problem areas such as its exposure to the California energy
markets and its Dhabol project in India. In addition, Moody's will
analyze further restructuring efforts and the potential for further asset
write-downs as well as for future asset sales that can generate cash for
debt reduction.

Debt securities under review include:

Guaranteed Senior NotesA3

Senior UnsecuredBaa1

Senior Secured or Conv./Exch. Sr. Sec. Shelf(P)A3 / (P)Baa1 / (P)Baa3

Senior SubordinatedBaa2

Guaranteed Cum. Trust PreferredBaa2

Guaranteed Trust PreferredBaa2

Senior Subordinated Shelf(P)Baa2

Cum. Guaranteed Preferred StockBaa3

Cum. Guaranteed Preferred Stock Shelf(P)Baa3

Also impacted by the review will be the following issues:

Marlin Water TrustBaa1

Osprey Trust (I & II)Baa2

European Power Limited Company (Margaux)Ba2

Enron Credit Linked Notes Trust (I & II)(Yosemite)Baa1

Enron is one of the world's largest energy companies with approximately
$63.4 billion in energy assets. The company produces electricity and
transports natural gas, develops, constructs and operates energy
facilities, and markets and delivers physical commodities and financial
and risk management services. It is headquartered in Houston, Texas.


                            end
-0- (MDY) Oct/29/2001 15:06 GMT