Analyst: GE Capital Needs At Least $20 Billion
GE Capital -- the struggling finance division of the industrial manufacturing and media giant -- must raise $20 billion to $40 billion in capital over the next year or GE may lose its prize AAA rating, one analyst said this morning.
Sean Egan, co-founder of Egan-Jones ratings agency, said GE Financial must roll over a lot of debt over the next two years and may have difficulty getting credit at the rates it has enjoyed as a blue-chip stock.
You can see all of Egan's comments from this morning on Bloomberg TV, right here.
Shares of GE have lost more than 70 percent of their value over the past year, largely thanks to hits taken by GE Financial, which does consumer and business financing and, like just about every other big bank, is getting hurt by the credit crisis.
Last Friday, GE cut its dividend by two-thirds in an effort to save $9 billion.
March 2, 2009; 11:40 AM ET
Categories: The Ticker | Tags: GE, GE Financial, General Electric
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