Fitch gives Energy Future Intermediate notes B

Fitch Ratings said it has assigned B/RR1 ratings to the following proposed issuance by Energy Future Intermediate Holding Co. LLC: $250 million of 6 7/8% senior secured first-lien notes due 2017 and $600 million of 11¾% senior secured second-lien notes due 2022.

The RR1 recovery ratings indicate an outstanding recovery of 91%-100%, the agency noted.

The second-lien notes being issued are part of the same series as the outstanding $1.15 billion of senior secured second-lien notes due 2022 that were issued in February 2012.

The agency said that the current highly leveraged capital structure at Texas Competitive Electric Holdings Company LLC is not sustainable, and some kind of default seems inevitable.

As of June 30, Energy Future Holding Corp. had inter-company borrowings from Texas Competitive of $680 million.

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