S&P Cuts GE, A Mere Formality (GE)
General Electric Co. (NYSE: GE) was finally downgraded by a debt ratings agency. Standard & Poor’s cut the ratings for GE. This has been telegraphed for nearly three months. What is interesting is that the company is trading up on…
The company’s long-term rating was cut to AA+ from AAA. Where this gets interesting is that the rating outlook is actually now STABLE. What that means in effect is that there are fewer reviews and a much lower chance that any more downgrades will be given in the immediate term.
General Electric Capital Corporation was also lowered To AA+ from AAA; but this does not affect the company’s ‘A-1+’ short-term funding ratings. Its outlook is Stable.
Despite the rating like this, GE is still apparently the highest rated of financial capital companies. Interestingly enough, the stock is UP 4% at $8.83 right before the open.
JON C. OGG
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