Two Energy Giants to Separate Assets Jul 00

Standard & Poors, July 2000

Abstract
This past week, two of the biggest energy companies separately announced that they would split their assets into two independently owned companies. Each of the new companies appeals to a very different type of investor. Although the decision to sever--or not to sever--the corporate ties between the energy-related businesses (Williams Energy) of The Williams Companies Inc. and Williams Communications Group Inc. will not be made until after a thorough review of various options, it can probably be assumed that one way or another, and sooner rather than later, this unlikely pair will part company. The credit implications for bondholders is pretty clear. Upon news of the announcement, Standard & Poor's lowered the credit rating of Williams Communications (see related News...

Companies mentioned in this report are:
- The Williams Cos. Inc.
- CenterPoint Energy Houston Electric LLC
- Enron Corp.
- The AES Corp.
- Calpine Corp.
- Duke Energy Trading and Marketing, L.L.C.
- Williams Communications Group Inc.
- Dynegy Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- The Williams Cos. Inc.
- CenterPoint Energy Houston Electric LLC
- Enron Corp.
- The AES Corp.
- Calpine Corp.
- Duke Energy Trading and Marketing, L.L.C.
- Williams Communications Group Inc.
- Dynegy Inc.

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