Speaking at EPRM’s US congress, Hunter said the credit situation in theelectricity sector was likely to improve through 2003, but the sector would stillbe dominated by downgrades.

He estimated that downgrades would outnumber upgrades by 7 to 1 this year, comparedwith a ratio of more than 15 to 1 in 2002. “The situation is improving,but it’s a sign of how bad things have been that it’s almost a reliefto get to this level,” he said.

Hunter said things could have been far worse. The worst-case