Subject: Credit Trading - Use of ERatings and Restricted List
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Tue, 15 Aug 2000 13:03:00 -0700 (PDT)

Bryan/Tim - Please pass this note on to your teams.  Thanks.

Please note the new procedures set out below which have been agreed with 
Credit and Credit Trading and take effect immediately.

1.  Use of Enron Credit Ratings

ERatings can be used freely in pricing credit protection for reference 
entities where the ERating does not contain "confidential information" (this 
is defined in the Credit Trading Group's existing confidentiality/Chinese 
Walls procedures - please consult with Legal if the meaning of confidential 
information is unclear in a particular case). 

If the ERating does or may contain confidential information (which Credit 
Risk Management will flag in each case) then the rating can only be used with 
the prior authorisation of the Legal Department.  By way of general guidance, 
authorisation will not be granted where this would result in a clear breach 
of a confidentiality undertaking given by Enron, or where the reference 
entity is privately owned and there is little or no publicly available credit 
information about it.

2.  Restricted List Procedure 

The Restricted List is reviewed and, if necessary, updated by Legal at least 
once a fortnight.

The Restricted List is "unpublished", which means that the only person 
outside Legal who may see it is Bryan Seyfried.

Before a credit price for any new reference entity is published outside 
Enron, Bryan will check that that name does not appear on the Restricted 
List.  If it does, the price may not be published.

If you have any questions please contact myself or Michael Brown.

Best regards

Paul