logo
Share SHARE
FONT-SIZE Plus   Neg

Moody's Downgrades GE Debt Rating To Aa3, GE Capital To A1

General Electric Co. (GE)'s credit rating was cut by Moody's Investors Service to Aa3 from Aa2 and its wholly-owned finance unit, General Electric Capital Corp. or GECC, was downgraded to an A1 rating from Aa2. Moody's affirmed the Prime-1 ratings of both companies. The downgrades conclude a review begun March 19 after Moody's revised the criteria for ratings of financial companies including GE Capital. Moody's said the cuts reflect "the impact of GE Capital's higher risk profile on GE."

Moody's expects the risk profiles of market-funded financial institutions, including GECC, are higher than was previously reflected in their ratings. While GECC has improved its liquidity and capital levels since the onset of the credit crisis, Moody's believes that, notwithstanding these positive steps, there remain material risks associated with the firm's funding model. Moody's therefore revised its view of GECC's standalone credit profile to Baa1 from A2.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The recent week marked the lull before the storm, with very few market moving economic numbers released during the week. However, the economic news flow picks up pace in the upcoming week, offering glimpses into every vehicle of economic growth, ranging from consumers to private sector activity to housing.... Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations.
comments powered by Disqus
Follow RTT