Enron cut to junk status by S&P (ENE, DYN) By Tomi Kilgore
Standard & Poor's said it has lowered Enron's (ENE) long-term corporate credit rating to "single-B minus" from "triple-B minus," citing concerns about "the viability of the merger agreement with Dynegy and the liquidity implications of the possible failure of that transaction." Enron is now halted for trading on the NYSE due to an order imbalance but is crashing $2.50, or 61 percent, to $1.61 in regional exchange trading. "A move by Enron to seek protection from its creditors through a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code is a distinct possibility if the merger falls through," the ratings service added. Dynegy (DYN) is tumbling $4.64, or 11 percent, to $36.25.