Fitch changes some Energy Future ratings

Fitch Ratings said it revised the ratings for Energy Future Holdings Corp.'s senior notes and Energy Future Competitive Holdings' unsecured notes to CCC/RR6 from CCC+/RR6 and lowered the ratings on Texas Competitive Electric Holdings' guaranteed notes to B/RR4 from B+/RR3 and on its senior unsecured debt to CCC/RR6 from B-/RR5.

The agency also affirmed the issuer default ratings of these companies at B, Energy Future's guaranteed notes at B+/RR3 and Texas Competitive's senior secured bank facilities at BB/RR1 and secured lease facility bonds at B/RR4.

The outlook was revised to negative from stable.

The agency said the junior securities of Texas Competitive were downgraded by one notch to reflect its current view of enterprise value in a distress scenario. At the same time, those Energy Future and Energy Future Competitive securities previously rated CCC+ are now rated CCC to reflect the change in Fitch's rating scale in March to eliminate plus and minus designations in the CCC rating category.

The outlook revision reflects the effect of the economic slowdown in Texas and resulting dampening of cash flow prospects as a result of lower-than-anticipated market heat rates in Ercot, Fitch said.

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