Fitch: High Yield Refundings of U.S. Energy Merchants Only S-T Fix; Teleconference 10/15.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 13, 2003

U.S. energy merchants have made good progress in solving near-term liquidity woes via capital market access and successful bank credit refinancings over the last few months. This progress has generally led to a stabilization of credit ratings in the sector, albeit within the speculative-grade category for many industry participants. The completed refinancings, however, have not necessarily enhanced the underlying credit fundamentals of the sector through leverage reduction and/or capital structure improvement, according to Fitch Ratings.

An explosive high yield market during the summer enabled companies such as Reliant, Dynegy Holdings, Calpine and Williams Companies to successfully reduce their reliance on problematic short-term bank credit and tap the high yield markets, a significant step considering the risk of insolvency that three of these companies faced at some point during the last twelve-eighteen months.

While some companies engaged in successful bank credit refinancings, others such as Mirant, PG&E National Energy Group and NRG Energy, mired in failed negotiations with bank creditors to reach a refinancing accord or out-of-court debt restructuring settlements, were forced to file for Chapter 11 bankruptcy.

U.S. wholesale power market conditions are still very weak, and Fitch expects they will remain so for the foreseeable future. Fitch will be hosting a teleconference Wednesday Oct. 15 at 10:00 a.m. EDT to discuss these developments within the U.S. global power sector. Fitch analysts Hugh Welton, Richard Hunter, Robert Hornick and Ellen Lapson will participate in the call. In addition to the companies referenced above, credits that will be discussed during the call include American Electric Power, Duke Energy, and FirstEnergy.

Participants are invited to send questions in advance by email to '[e-mail]'. Listeners will also be able to participate in a question and answer session during the call.

U.S. participants should call [phone], and callers from outside the U.S. should call [phone] ten minutes prior to the 10:00 a.m. EDT start time. In order to ensure there are sufficient telephone lines available, please use internal conferencing capabilities, if possible, for multiple listeners at a single location. A replay of the teleconference will be available starting at 1:00 p.m. EDT on Oct. 15 until Oct. 21 at [phone] (U.S.) or [phone] (outside the U.S.). The access code is '3241557'.

Additionally, an audio version of the teleconference replay will be archived on the Fitch Ratings web site for one month. Interested parties can find the appropriate link at the 'Company Events & Online Media' link, which is located under the heading 'About Fitch' at 'www.fitchratings.com'.