GE Loses Top Credit Rating
Standard & Poor's cut the credit rating of industrial giant GE today from AAA to AA+, reflecting troubles in GE Capital, the company's lending arm, which is facing the same problems as most big banks. S&P affirmed the company's "stable" outlook.
The move had been expected for some time; GE was one of just six companies that carried the top rating. It had been a badge of pride for the company.
Nevertheless, GE said in a statement that it anticipates no operational impact from the downgrade.
“As we have previously said, we are prepared to fund the company as a Double-A, but we will continue to run GE with the disciplines of a Triple-A company, which means low leverage, high liquidity and strong risk disciplines," GE chief executive Jeff Immelt said in a statement. "While no one likes a downgrade, this review and rating reaffirm the relative strength of the company.”
GE has promised a "detailed update" on GE Capital at its investor meeting next Thursday. Shares of GE are up 4.4 percent to $8.83.
March 12, 2009; 10:21 AM ET
Categories: The Ticker | Tags: GE, Jeff Immelt
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