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ENRON CORP. SENIOR DEBENTURES RAISED TO 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 26 /PRNewswire/ -- Enron Corp.'s notes and debentures are raised to 'BBB+' from 'BBB' by Fitch. The company's subordinated debentures and preferred stock are raised to 'BBB' from 'BBB-'. Subsidiary Houston Pipe Line Co.'s senior debt is raised to 'BBB+' from 'BBB'. All above securities are removed from FitchAlert, where they were placed with positive implications on April 30, 1993. Enron's 'F-2' commercial paper is affirmed. The credit trend is improving.
 The action is based on several current and prospective factors. Management's recent and expected credit quality improvement initiatives strongly suggest further significant and sustainable enhancement in Enron's credit stature. Consistently high levels of internally generated operating cash flow, expected proceeds from creatively monetizing selected assets, such as Northern Border Pipeline via a master limited partnership, and innovative joint ventures, such as the partnership with the California Public Employee Retirement System, will enable management to step up capital spending and further shrink debt as a portion of total capitalization. Corporate strategy is astutely focused on attaining high and continuous earnings and cash flow growth primarily via unit volume gains, not price inflation. Operating strategy is focused on improving efficiency in the full spectrum of operations and being a low cost provider of service. Using physical and financial hedging mechanisms, management curbs Enron's exposure to commodity energy price volatility.
 Enron is structuring its businesses to compete on a vertically integrated basis around the globe in all segments of the natural gas industry: exploration/production, gas and associated liquids gathering/processing/marketing, pipeline transportation, unregulated gas merchant marketing, and gas-fired electric power plant engineering/construction/operation. Fitch is more comfortable with the credit risk exposures associated with Enron's domestic and international portfolio of natural-gas-related businesses.
 -0- 8/26/93
 /CONTACT: Bill Stellenwerf, CPA of Fitch, 212-908-0558/
 (ENE)


CO: Enron Corp. ST: Texas IN: OIL SU: RTG

SH -- NY060 -- 6263 08/26/93 14:55 EDT
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Publication:PR Newswire
Date:Aug 26, 1993
Words:317
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