Enron's Credit Rating: Enron's Bankers' Contacts with Moody's and Government Officials

Publication

Enron's Credit Rating: Enron's Bankers' Contacts with Moody's and Government Officials

Abstract

The Senate Committee on Governmental Affairs investigated the collapse of Enron Corp. and how a credit rating agency, Moody's Investor Service, decided not to downgrade Enron's credit rating. The investigation concluded that this decision made by Moody's Investor center was not due to pressure or improper influence, but rather new information that changed Moody's perspective on Enron's financial circumstance. Also, the Committee staff concluded that Moody's did not impose improper influence on government officials unjustly.