Fitch cuts Energy Future

Fitch Ratings said it downgraded to B- from B the issuer default ratings of Energy Future Holdings Corp., Energy Future Intermediate Holding Co. LLC, Texas Competitive Electric Holdings Co. LLC and Energy Future Competitive Holdings Co.

Energy Future's secured notes were affirmed at B+ with a recovery rating of RR1, its guaranteed notes were revised to B with a recovery rating of RR3 from B with a recovery rating of RR4 and its senior notes to CCC/RR5 from CCC/RR6.

Energy Future Intermediate's secured notes were affirmed at B+ with a recovery rating of RR1.

Texas Competitive Electric's senior secured bank facilities were downgraded to B+ with a recovery rating of RR1 from BB with a recovery rating of RR1, its secured lease facility bonds were revised to B with a recovery rating of RR3 from B with a recovery rating of RR4, and its guaranteed notes were downgraded to B- with a recovery rating of RR4 from B/RR4.

Energy Future Competitive's unsecured notes were revised to CCC with a recovery rating of RR5 from CCC with a recovery rating of RR6.

The outlook is negative.

Fitch also affirmed Oncor Electric Delivery Co. LLC's issuer default rating at BBB-. The outlook for Oncor remains stable.

The agency said the downgrade reflects diminished expectations of the cash flow generation capability of the competitive segment issuers in the face of high debt leverage.

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