On Dec. 1, 2004, Standard&Poor's Ratings Services lowered its long-term corporate credit ratings on DTE Energy Inc. and its regulated utility affiliates, Detroit Edison Co. and Michigan Consolidated Gas Co. (MichCon), to 'BBB' from 'BBB+'. At the same time, Standard&Poor's affirmed its 'A-2' short-term corporate credit and commercial paper ratings on the companies. The outlook is stable. As of Sept. 30, 2004, Detroit, Mich.-based DTE Energy had $8.6 billion of debt outstanding. The rating action reflects expectations for credit metrics consistent with the 'BBB' corporate credit rating despite the impact of the recent Michigan Public Service Commission (MPSC) rate order for Detroit Edison. Detroit Edison's competitive position and cash flow have eroded throughout 2004 with the
