Fitch: TXU, units cut to negative

Fitch Ratings said it affirmed the ratings of TXU Corp., TXU US Holdings Co. and TXU Energy Co., LLC and changed the outlook for each of these companies to negative from stable.

The outlook was cut for TXU Corp.'s BBB- senior unsecured rating, BB+ preferred stock rating and F3 short-term rating; TXU US Holding's BBB- senior unsecured rating and BBB preferred stock rating and TXU Energy Co.'s BBB senior unsecured rating and F2 short-term rating.

The outstanding ratings of TXU Electric Delivery Co. are affirmed and its outlook remains stable, including its A- senior secured rating, BBB+ secured notes rating and senior unsecured rating and F2 short-term rating.

The revised outlook reflects Fitch's growing concern that an increasing level of cash flow is being deployed towards activities designed to enhance shareholder value rather than to decrease parent company leverage.

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