S&P cuts Energy Future, subsidiaries

Standard & Poor's said it lowered its corporate credit ratings on Energy Future Intermediate Holding Co. LLC, Texas Competitive Electric Holdings Co. LLC and Energy Future Competitive Holdings Co. to CC from CCC.

The agency said it maintained the negative outlook due to the announcement of various exchanges - completed and announced - that S&P views as distressed.

Energy Future Holdings Corp.'s SD rating is also unchanged.

The agency said it lowered to CC from B- the debt related to the announced exchange of senior secured debt at Energy Future Holdings Corp. and Energy Future Intermediate. The affected debt includes 10% senior secured notes due 2020, 9¾% senior secured notes due 2019 and 9¾% senior secured notes due 2019.

The agency lowered to CC from CCC its rating on Texas Competitive Electric's senior secured revolving credit facilities, which contain the revolving credit facility involved in the distressed offer. The agency also lowered to CC from CCC its corporate credit rating on Energy Financial Holding subsidiary Energy Future Competitive Holdings.

The agency said Energy Future Competitive Holdings guarantees Texas Competitive Electric's senior secured debt and so falls to CC along with Texas Competitive.

S&P revised the recovery rating to 5 from 6 on the senior secured second-lien debt. This change in the recovery rating resulted in a change in the rating on these securities to CCC- from CC.

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