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ENRON CORP. $100 MILLION 7 PERCENT SENIOR DEBENTURES DUE 2023 RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 23 /PRNewswire/ -- Enron Corp.'s $100 million 7 percent senior debentures due 2023 are rated 'BBB' by Fitch. The company's 'BBB' notes and debentures and 'BBB-' subordinated debentures and preferred stock remain on FitchAlert with positive implications. Enron's 'F-2' commercial paper is affirmed.
 The ratings and FitchAlert status are based on several current and prospective factors. Fitch is assessing management's recent and expected (over the next two to three years) credit quality improvement initiatives, which suggest further significant and sustainable enhancement in Enron's credit stature by the mid-1990s.
 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. Using physical and financial hedging mechanisms, management curbs 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 becoming more comfortable with the credit risk exposures associated with Enron's domestic and international portfolio of natural-gas-related businesses.
 -0- 8/23/93
 /CONTACT: Bill Stellenwerf of Fitch, 212-908-0558/
 (ENE)


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

SH -- NY051 -- 5112 08/23/93 14:45 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
Words:279
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