Fitch Ratings Affirms DTE Energy Co. & Subsidiaries.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 19, 2002

Fitch Ratings has affirmed the credit ratings of DTE Energy Co. (DTE), and its subsidiaries, Detroit Edison Co. (Detroit Edison), DTE Energy Enterprises (DTEE), and Michigan Consolidated Gas (MichCon). Fitch has also upgraded the senior unsecured rating of MCN Energy Enterprises (MCNEE) to 'BBB+' from 'BBB', reflecting the credit support guarantee from DTEE on MCNEE debt. A detailed description of the ratings is shown below. The Rating Outlook for all five entities is Stable.

The ratings affirmations are based on a recent review of DTE and its subsidiaries operating results and updated business plan. DTE's credit profile continues to be supported by the stable cash flow stream generated by its regulated utility businesses, Detroit Edison and MichCon. DTE relies on the receipt of upstream dividends from its regulated subsidiaries to service parent-company debt and pay common dividends. Detroit Edison benefits from solid credit protection measures, improving operating results, and favorable restructuring legislation. MichCon is characterized by its low business risk, competitive gas rates, stable credit protection and leverage measures and good supply, transportation and storage arrangements. Upstream dividends from MichCon are also applied to the securities of DTEE and MCNEE if necessary.

DTE has been successful at achieving targeted merger synergies from its 2001 acquisition of MCN Energy Group, now named DTEE. Merger synergies have been realized primarily through head count reduction and cost savings. Ongoing merger synergies are forecasted to be high, with projected cost savings of $110 million in 2002, and $360 million from 2003 through 2005. Additionally, DTE has completed several out of region MCN asset sales, $768 million to date, using the proceeds to reduce debt.

DTE's consolidated credit protection measures are generally consistent with the 'BBB+' rating category, although the company continues to have moderately high consolidated leverage due to merger related debt. As of the second quarter of 2002, DTE's debt ratio was 56% of total capitalization (excluding securitization bonds), vs. 52% prior to the merger. The company has targeted a 53% debt ratio by year-end 2002 through the continued sale of non-strategic assets and additional merger-related cost savings. Positively, DTE's liquidity position is strong, with more than $1 billion in unused credit facilities as of June 30, 2002.

Going forward, growth at DTE is anticipated to stem from the sustained expansion from the company's various non-regulated investments in tax-advantaged operations, coal supply, wholesale power and distributed generation. Net income from unregulated operations is forecasted to grow from a post-merger base of $162 million in 2001 to between $190-$210 million in 2003. DTE's unregulated investment portfolio is relatively diverse, with a moderate risk profile overall. The ratings incorporate Fitch's expectation that DTE will continue its cautious approach to managing its non-regulated investments.

DTE is a holding company whose largest subsidiary is Detroit Edison, a regulated electric utility. DTEE's primary subsidiary is MichCon, a regulated natural gas company. MCNEE is the holding company for the non-regulated business ventures of DTEE.

Ratings Upgraded:

Michigan Consolidated Gas

--Senior unsecured debt to 'BBB+' from 'BBB'.

Ratings Affirmed

DTE Energy

--Senior unsecured debt 'BBB+';

--Trust preferred securities 'BBB';

--Short-term debt 'F2'.

Detroit Edison

--Senior secured debt 'A-';

--Senior unsecured debt 'BBB+';

--Preferred stock 'BBB';

--Short-term debt 'F2'.

DTE Enterprises

--Indicative senior unsecured debt 'BBB+';

--Preferred stock 'BBB'.

Michigan Consolidated Gas

--Senior secured debt 'A';

--Short-term debt 'F1'.

Ratings Withdrawn:

DTE Enterprises

--Short-term debt 'F2'.

MCN Energy Enterprises

--Short-term debt 'F2'.