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Moody's lowers Probability of Default Rating to D-PD for Energy Future.

Summary: Approximately $40 billion of debt securities affected

Moody's Investors Service lowered the

Probability of Default Ratings (PDR) of Energy Future Intermediate

Holding Co. LLC (EFIH) and Energy Future Competitive Holdings Co. (EFCH)

to D-PD from C1-PD and C-PD, respectively, following Energy Future

Holdings Corp's (EFH) filing for bankruptcy protection on April 29, 2014.

Concurrently, Moody's downgraded the senior unsecured ratings of EFH to

Ca from C3; the senior unsecured ratings of EFIH to C3 from C1 and

the senior secured 2nd lien notes of Texas Competitive Electric Holdings

Co. LLC (TCEH) to C from Ca. All other ratings assigned to the EFH, EFIH,

EFCH, and TCEH entities are affirmed.

In addition, the B3 senior secured rating and stable rating outlook at

Oncor Electric Delivery Company LLC (Oncor) are affirmed.

Subsequent to today's actions, Moody's will withdraw the ratings listed

below because EFH, EFIH, EFCH, and TCEH have all entered into bankruptcy.

Please refer to Moody's Withdrawal Policy on moodys.com.

RATINGS RATIONALE

Today's rating action reflects the April 29, 2014 bankruptcy filing by

EFH and its wholly-owned subsidiaries including: EFIH, EFCH, and TCEH.

Moody's ratings at both EFIH and EFCH have remained largely unchanged

following the bankruptcy announcement on April 29, 2014 as the current

ratings had largely incorporated some form of restructuring at those

entities. That said, based on Moody's preliminary understanding of the

bankruptcy filing, the downgrade of certain debt securities at EFH, EFIH

and TCEH reflects the likely recovery prospects for those defaulted debt

securities. When a debt instrument becomes impaired or defaults, Moody's

rating (prior to withdrawal) reflects the expectation for recovery of

principal and interest, as well as the uncertainty around the expectation

for recovery.

The affirmation of Oncor's B3 senior secured rating and stable rating

outlook reflect our belief that the ring-fencing provisions will

sufficiently insulate Oncor from any bankruptcy reorganization affects at

its parent or affiliates. Oncor primary regulator, the Public Utility

Commission of Texas (PUCT), will remain supportive to Oncor's long term

credit quality, and we view Oncor's suite of approved regulatory cost

recovery mechanisms and timely recovery of prudently incurred costs and

investments, favorably. Oncor maintains adequate sources of liquidity to

withstand any modest financial impacts resulting from the bankruptcy

filings, and a potential write-off of approximately $150 million will not

impact Oncor's ratings of the stable rating outlook.

All of the Loss Given Default assessments for EFH, EFIH, EFCH and TCEH

have been withdrawn.

The following ratings were downgraded and will be withdrawn:

Issuer: Energy Future Competitive Holdings

Probability of Default Rating downgraded to D-PD from C-PD

Issuer: Texas Competitive Electric Holdings

15% Sr Sec 2nd Lien Notes due 04/01/2021 downgraded to C from Ca,

reflecting estimated recovery less than 35%

15% Sr Sec 2nd Lien Notes Series B due 04/01/2021 downgraded to C from

Ca, reflecting estimated recovery less than 35%

Issuer: Energy Future Intermediate Holding

Probability of Default Rating downgraded to D-PD from C1-PD

11.25%/12.25% Sr Unsec PIK Notes due 2018 downgraded to C3 from C1,

reflecting estimated recovery between 65% - 80%

Issuer: Energy Future Holdings Corp

10.875% Sr Unsec Notes due 11/01/2017 downgraded to Ca from C3,

reflecting estimated recovery at or near 60%

11.25/12% Sr Unsec Toggle Notes due 11/01/2017 downgraded to Ca from

C3, reflecting estimated recovery at or near 60%

9.75% Sr Sec 1st Lien EFIH Transfer Notes due 10/15/2019 (senior

unsecured) downgraded to Ca from C3, reflecting estimated recovery

between 35% - 65%

10% Sr Sec 1st Lien EFIH Transfer Notes due 1/15/2020 (senior unsecured)

downgraded to Ca from C3, reflecting estimated recovery between 35% -

65%

5.55% Legacy Sr Unsec Notes Series P due 11/15/2014 downgraded to Ca from

C3, reflecting estimated recovery between 35% - 65%

6.5% Legacy Sr Unsec Notes Series P due 11/15/2024 downgraded to Ca from

C3, reflecting estimated recovery between 35% - 65%

6.55% Legacy Sr Unsec Notes Series P due 11/15/2034 downgraded to Ca from

C3, reflecting estimated recovery between 35% - 65%

The following ratings were affirmed and will be withdrawn:

Issuer: Energy Future Intermediate Holding

Corporate Family Rating: C1

Speculative Liquidity Rating: SGL-4

10% Sr Sec 1st Lien Notes due 12/01/2020 affirmed at B3, reflecting

estimated recovery between 95% - 97%

6.875% Sr Sec 1st Lien Notes due 08/15/2017 affirmed at B3, reflecting

estimated recovery between 95% - 97%

9.75% Sr Sec 1st Lien Notes due 10/15/2019 (now senior unsecured)

affirmed at B3, reflecting estimated recovery between 95% - 97%

11.75% Sr Sec 2nd Lien Notes due 03/01/2022 affirmed at C1, reflecting

estimated recovery between 90% - 95%

Issuer: Energy Future Competitive Holdings

Corporate Family Rating: Ca

Speculative Liquidity Rating: SGL-4

9.58% Sr Unsec Notes due 12/04/2019 affirmed at C, reflecting estimated

recovery less than 35%

8.254% Sr Unsec Notes due 12/31/2021 affirmed at C, reflecting estimated

recovery less than 35%

Issuer: Texas Competitive Electric Holdings

$1.4B Revolving Credit Facility due October 2016 affirmed at C3,

reflecting estimated recovery between 65% - 80%

$645M Revolving Credit Facility due October 2016 affirmed at C3,

reflecting estimated recovery between 65% - 80%11.5%

Sr Sec 1st Lien Notes due 10/01/2020 affirmed at C3, reflecting

estimated recovery between 65% - 80%

Sr. Sec. Term Loan due 10/10/2014 affirmed at C3, reflecting estimated

recovery between 65% - 80%

Sr. Sec. Letter of Credit Facility due 10/10/2014 affirmed at C3,

reflecting estimated recovery between 65% - 80%

Sr. Sec. Term Loan due 10/10/2017 affirmed at C3, reflecting estimated

recovery between 65% - 80%

Sr. Sec Letter of Credit Facility due 10/10/2017 affirmed at C3,

reflecting estimated recovery between 65% - 80%

10.25% Sr Unsec Notes due 11/01/2015 affirmed at C, reflecting estimated

recovery less than 35%

10.25% Sr Unsec Notes Series B due 11/01/2015 affirmed at C, reflecting

estimated recovery less than 35%

10.5/11.25% Sr Unsec Toggle Notes due 11/01/2016 affirmed at C,

reflecting estimated recovery less than 35%

7.46% Legacy Sr. Sec. Notes due 01/01/2015 affirmed at C, reflecting

estimated recovery less than 35%

Legacy Pollution Control Bonds affirmed at C, reflecting estimated

recovery less than 35%

The following ratings were affirmed:

Issuer: Oncor Electric Delivery Company

Outlook: Stable

4.1% Sr Sec Notes due 06/01/2022 affirmed at B3

4.55% Sr Sec Notes due 12/01/2041 affirmed at B3

5.0% Sr Sec Notes due 09/30/2017 affirmed at B3

5.25% Sr Sec Notes due 09/30/2040 affirmed at B3

5.3% Sr Sec Notes due 06/01/2042 affirmed at B3

5.75% Sr Sec Notes due 09/30/2020 affirmed at B3

6.375% Sr Sec Notes due 01/15/2015 affirmed at B3

6.8% Sr Sec Notes due 09/01/2018 affirmed at B3

7.0% Debentures due 09/01/2022 affirmed at B3

7.0% Sr Sec Notes due 05/01/2032 affirmed at B3

7.25% Sr Sec Notes due 01/15/2033 affirmed at B3

7.5% Sr Sec Notes due 09/01/2038 affirmed at B3

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Publication:EMBIN (Emerging Markets Business Information News)
Date:Apr 30, 2014
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