TOKYO (FWN) - The yen was higher against the dollar in midafternoon trade following a mild fall despite Moody's lowering of the rating of yen-denominated domestic securities issued or guaranteed by the government of Japan to Aa3 from Aa2, dealers said. They said concerns over the impact of Enron's collapse on US companies weighed on the dollar. Moody's maintained a negative outlook on the yen-denominated debt rating, as well as Japan's Aa1 foreign currency country ceilings and the government's Aa1 rating for internationally issued bonds including euroyen. The dollar briefly rose to around 124.2 yen in immediate reaction to the announcement of the rating action from around 124.09 yen, but it quickly turned top-heavy. BankOne NA foreign exchange analyst Masahiro Ishikawa said the local currency may remain exposed to credit risk concerns for the rest of the year and perhaps into the new year. "It is risky to disregard the (Moody's) announcement just because there was no reaction, and you should not underestimate the risk associated with the downgrades," he said. "The news from Moody's apparently increased the chance of the yen testing the 125 yen level," he added. Separately, concerns over US companies' exposure to Enron weighed on the dollar, while the euro remains strong, dealers said. "I am not so positive about the euro against the dollar, but I think the unit (euro) has a good chance of making gains to around the 111.75 yen level eventually against the yen," Ishikawa said.