Moody's cuts Energy Future

Moody's Investors Service said it downgraded the probability of default rating for Energy Future Holdings Corp. to Ca from Caa2 and changed the speculative-grade liquidity assessment to SGL-4 from SGL-3. The agency also said it affirmed its corporate family rating at Caa1, along with Oncor Electric Delivery Co. LLC's senior secured rating at Baa1.

The outlook remains negative.

The downgrade reflects a view that the company's recent debt exchange offer is a distressed exchange, Moody's said. It also reflects a belief that the exchange transaction has a high likelihood of closing, the agency said.

The ratings also consider its weak financial profile, untenable capital structure and its questionable long-term business plan sustainability.

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