Please print
----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/21/2001 12:34 PM -----

	Raul Rizo-Patron
	02/21/2001 11:15 AM
		 
		 To: Jeffrey A Shankman/HOU/ECT@ECT, David McConnell/LON/ECT@ECT
		 cc: 
		 Subject: Project Ice - Credit Summary

Below is the credit summary put together by Tom Moran from our credit group.

Sovereign Risk
China
$50MM in open credit risk at any given time with 5-8 different counterparts
$30MM in inventory
ENE must be willing to commit $80 to $100MM in China on an unsecured basis at 
Transammonia's current business level.

Prepayments for supply in Ukraine and Russia
Magnitudes of these prepays is not yet clear
Currently a 15% reserve is being held from the prepayment date until delivery 
date

Product is currently sourced and sold in countries with low E-Ratings and 
where Enron does not have much credit knowledge.

Credit Risk
$430M (note:  thousand not million) in reported credit losses since 1995.
$4MM as allowance for doubtful accounts on the balance sheet.
All prepayments and L/C transactions are coordinated with credit in NY office.
Credit rating system of A,B, or C
$115MM in outgoing L/C are currently issued by Transammonia
Unable to determine counterparty concentration risk due to incomplete A/R & 
A/P reporting (should be obtained at follow-up due diligence)
Most petchem and LPG counterparties are well know to Enron credit
Almost all fertilizer counterparties are new to Enron

Raul