S&P lowers Energy Future, rates toggle notes CC

Standard & Poor's said it lowered the corporate credit rating on Energy Future Holdings Corp. to selective default (SD) from CCC based on the consummation of a distressed-debt exchange of five debt securities totaling about $1.6 billion.

The agency also said it assigned a CC rating with a 6 recovery rating to Energy Future Intermediate Holding Co. LLC's new senior secured toggle notes due 2018 of about $1.1 billion.

S&P said it lowered Energy Future Holding's series Q and series R unsecured debt to D.

The outlook remains negative.

The corporate credit rating was downgraded to selective default due to the distressed exchange.

The exchange continues Energy Future's strategy to reduce debt levels and its annual interest burden through distressed exchanges, S&P said.

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