Fitch: Energy Future outlook negative

Fitch Ratings said that Energy Future Holdings Corp., which has an issuer default rating of B and negative view, and Energy Future Intermediate Holdings launched an exchange offer as a way to reduce debt and extend the average life of debt.

Fitch said it expects to assign a rating to the new secured notes once the result of the exchange offer is known and at that time will update the company's debt-issue ratings.

The agency said it expects its issuer default ratings and negative outlook will be unaffected pro forma for the exchange because combined debt of both companies is about $38.1 billion and will be reduced by only about 5% as a result of the exchange.

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