Moody's downgrades Energy Future

Moody's Investors Service said it downgraded Energy Future Intermediate Holding Co. LLC's probability of default rating to D-PD from Caa1-PD and Energy Future Competitive Holdings Co.'s probability of default rating to D-PD from C-PD following Energy Future Holdings Corp.'s filing for bankruptcy protection on April 29.

Concurrently, Moody's downgraded the senior debt ratings of Energy Future Holdings to Ca from Caa3, the senior debt ratings of Energy Future Intermediate to Caa3 from Caa1 and the senior secured second-lien notes of Texas Competitive Electric Holdings Co. LLC to C from Ca.

All other ratings assigned to the Energy Future Holdings, Energy Future Intermediate, Energy Future Competitive and Texas Competitive entities were affirmed, as were the Baa3 senior secured rating and stable outlook at Oncor Electric Delivery Co. LLC.

Based on Moody's preliminary understanding of the bankruptcy filing, the downgrade of some debt securities at Energy Future Holdings, Energy Future Intermediate and Texas Competitive reflects the likely recovery prospects for those defaulted debt securities.

The affirmation of Oncor's Baa3 senior secured rating reflects the agency's belief that the ring-fencing provisions will sufficiently insulate Oncor from any bankruptcy reorganization affects at its parent or affiliates.

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