Fitch Ratings Affirms TXU Corp & Texas Subsidiaries.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 10, 2002

Fitch Ratings affirms the 'BBB' rating on TXU Corp.'s (TXU) senior notes, the 'BBB-' rating on the preference stock and the 'F2' commercial paper rating. In addition, Fitch affirms the outstanding ratings and Stable Rating Outlook on TXU US Holdings (US Holdings), Oncor Electric Delivery Co. (Oncor), TXU Energy Co. LLC (TXU Energy), and TXU Gas Co. (TXU Gas), outlined below.

Fitch's rating's of TXU Corp. and the Stable Outlook are based upon the robust and stable cash flow from the US operations in electric and gas distribution and wholesale and retail supply business and adequate liquidity for these businesses and at the holding company. The rating also reflects Fitch's review of TXU's available liquidity facilities.

Fitch focuses heavily on cash flow rather than earnings in its assessments. TXU Corp does not depend on the receipt of any dividends or distributions from TXU Europe Ltd (TXE). Fitch's ratings for TXU Corp. have consistently assumed no cash receipts in its evaluation of the parent profile. While TXU Corp. has made material injections of capital into TXE in the past and has indicated that it will inject up to US $700 million to assist TXE in restructuring contracts and reducing debt, Fitch does not anticipate that the company will provide unlimited future support to TXE. TXU management has stressed publicly that any injections for TXE will be considered only to the extent that the US parent remains in a position to retain investment grade ratings. This was a material consideration in reducing the ratings of TXE, and adherence to this guidance is a primary consideration in the ratings of TXU Corp.

U.S. Holdings

--Senior unsecured debt 'BBB+';

--Preferred stock 'BBB+'.

Oncor

--First mortgage bonds 'A-'

--Debentures 'BBB+';

TXU Energy

--Senior unsecured bonds 'BBB+'.

TXU Gas Co.

--Senior notes 'BBB'.