Weekly Downgrade Wrap-Up
Per usual, we have a week’s worth of ratings actions on LBO-backed companies from ratings agencies Standard & Poor’s and Moody’s Investor Services. It’s the third light collection in a row — the past two weeks have only see ratings actions on five companies total; this week there are three. Company: Energy Future Holdings Corp. Sponsor: GS Capital, KKR, Morgan Stanley Private Equity, TPG, Citigroup Private Equity are sponsors. Ratings Action: Moody's downgraded the company's corporate family rating and probability of default rating to Caa1 from B3. Highlights: The rating action reflects the rating agency's view that the capital structure is untenable and will likely prompt the company to pursue some form of restructuring activity. "EFH's longer-term fundamentals remain weak. Fundamental concerns include: the magnitude of its debt ($44 billion) and significant looming maturities in 2014 (approximately $23 billion)."
