2009-11-23 20:39:10 -

Fitch Ratings expects to assign an 'AA' rating to the following securities to be issued by Tortoise Energy Capital Corporation (NYSE.

TYY), a closed-end fund managed by Tortoise Capital Advisors, LLC (Tortoise).

--Up to $65,000,000 of Mandatory Redeemable Preferred Shares, Series 2016, with a liquidation preference of $10 per share (MRP Shares).

Fitch expects to finalize the rating of the MRP shares

on the targeted closing date, which is expected to occur on Nov. 30, 2009. The expected rating is based on sufficient asset coverage provided to the MRP shares by the fund's underlying portfolio of assets, structural protections afforded by mandatory de-leveraging provisions in the event of asset coverage declines and the capabilities of Tortoise as investment advisor. The fund is expected to use the net proceeds from the sale of MRP shares along with funds borrowed under its credit facility, if necessary, to redeem in full its outstanding Auction Preferred Shares while maintaining the fund's leveraged capital structure.

Tortoise Energy Capital Corporation is a diversified, closed-end management investment company that commenced operations on May 31, 2005.
As of Oct. 31, 2009, the fund's total assets were $537.9 million. The MRP Shares are expected to trade on the New York Stock Exchange (NYSE) under the ticker 'TYY Pr A' within 30 days. Prior to the commencement of trading on the NYSE, MRP Shares will remain illiquid. Regardless, Fitch's rating on the MRP Shares speaks to credit risk of the security and not to potential liquidity in the secondary market.

At the time of the issuance of the MRP Shares, the fund's pro forma asset coverage ratio, as calculated in accordance with the Investment Company Act of 1940 (1940 Act), is expected to be in excess of 200%, which is the minimum asset coverage required by the 1940 Act. Also, at the time of issuance, the fund's pro forma asset coverage ratio, as calculated in accordance with the Fitch overcollateralization test per the 'AA' rating guidelines outlined in Fitch's 'Closed-End Fund Debt and Preferred Stock Rating Criteria' is expected to be in excess of 100%, which is the minimum asset coverage deemed consistent with an 'AA' rating. Fitch's closed-end fund rating criteria, published on Aug. 17, 2009, is available at ' www.fitchratings.com : ' under the following headers.

Criteria >> Financial Institutions >> Fund & Asset Manager Ratings


The fund's investment objective is to seek a high level of total return with an emphasis on current distributions paid to its stockholders. The fund pursues its objective, under normal market conditions, by investing at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of entities in the energy sector within the United States and at least 80% of its total assets in equity securities of master limited partnerships (MLPs) and their affiliates in the energy infrastructure sector. The fund will not invest more than 15% of its total assets, including assets obtained through leverage, in any single issuer as of the time of purchase. The fund may invest up to 20% of its total assets in debt securities, including securities rated below investment grade, at the time of purchase.

Tortoise, a wholly-owned subsidiary of Tortoise Holdings, LLC, is the fund's investment adviser, responsible for the fund's overall investment strategy and its implementation. The advisor was formed in October 2002 to provide portfolio management services to institutional and high-net-worth investors seeking professional management of their MLP investments. Mariner Holdings, LLC owns approximately 65% of Tortoise Holdings, LLC, with the remaining interest held by Tortoise's five managing directors and certain other senior Tortoise employees. As of Oct. 31, 2009, the advisor had approximately $2.5 billion in assets under management in the energy infrastructure industry.

Additional information is available at ' www.fitchratings.com : '.

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Fitch RatingsViktoria Baklanova, CFA, +1-212-908-9162 (New York)Russ
Thomas, +1-312-368-3189 (Chicago)Media RelationsBrian
Bertsch, +1-212-908-0549 (New York) brian.bertsch@fitchratings.com : mailto:brian.bertsch@fitchratings.com