UPDATE 2-Moody's, S&P cut TXU's debt ratings

(Adds action by Standard & Poor's)

NEW YORK, Oct 9 (Reuters) - Moody's Investors Service and Standard & Poor's on Tuesday cut their ratings on TXU Corp TXU.N, citing high levels of debt being taken on by the power company as part of its leveraged buyout.

Moody's assigned TXU a corporate family rating of "B2," five levels below investment grade. It cut TXU's existing senior unsecured debt six notches to "Caa1," seven levels below investment grade, from "Ba1."

S&P cut TXU's corporate credit rating four notches to "B-minus," six levels below investment grade, from "BB." TXU's existing senior unsecured debt was also cut five notches to "CCC," eight levels below investment grade, from "BB-minus."

TXU is being acquired by an investor group led by Kohlberg Kravis Roberts & Co [KKR.UL] and TPG Capital [TPG.UL] in a deal that will require about $46.7 billion in debt and equity financing, including refinancing of existing debt.