Re: Moody's Upgrade

Ted,

Thanks for kind words.

I have a favor to ask. Jason Sokolov who works with us part-time (he is a Rice
MBA candidate) has been accepted as a summer intern. I suggested that he ask
for
a position with your group for this summer. He works currently with Mike
Roberts,
4 hours a day.

Jason is a very bright and hard working person and I can recommend him
without reservations.

Vince

From: Ted Murphy
03/24/2000 03:43 PM

To: Vince J Kaminski/HOU/ECT@ECT, Grant Masson/HOU/ECT@ECT, Vasant
Shanbhogue/HOU/ECT@ECT, Tanya Tamarchenko/HOU/ECT@ECT, Vincent
Tang/HOU/ECT@ECT
cc:
Subject: Moody's Upgrade

To the great and powerful Research Group:

As you may know, Moody's has recently upgraded Enron from Baa2 to Baa1.
We had been on watch for an upgrade for a while and after their intitial
credit meeting, they still had questions primarily related to our control of
market and credit risk. To that end, Jeff McMahon and Tim Despain had Rick
Buy, Bill Bradford and I meet with eight members of the Moody's team. The
questions centered around policy and procedure in the Wholesale businesses.
We discussed VAR, stress testing and potential credit exposure. To make a
long story short, subsequent to that meeting, they reconvened their committee
and announced the upgrade.

I want you to know how critical your contribution was to the discussion and
will continue to be as the bar gets raised. I am sure that next year they
will continue to be concerned with our risk management capabilities as well
as extensions of our current platform - tail risk, intra day risk,
operational risk, and enterprise wide risk.

Thank you for your efforts in supporting RAC - it has tangible benefits.

Ted

p.s. - there is still lots of interesting opportunities to extend the paradigm