On July 16, 2002, Standard&Poor's placed the ratings of Duke Energy Corp., Duke Capital Corp. and its subsidiaries on CreditWatch with negative implications. The Ratings for Duke Energy reflect the consolidated creditworthiness of regulated and unregulated businesses. Duke Energy Corp. is a vertically integrated electric utility in the U.S.; this franchised electric business is conducted in North Carolina and South Carolina. Through its wholly owned subsidiary, Duke Capital Corp., Duke Energy engages in U.S. and international ventures which are both regulated and unregulated, including an extensive U.S. and Canadian pipeline network. Duke Energy has $21.5 billion of debt outstanding. These actions reflect additional concern regarding Duke Capital's unregulated businesses, specifically its trading subsidiary, Duke Energy Trading and Marketing
