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GE Bonds Got the Ratings Downgrade Traders Had Been Expecting

  • S&P cuts GE debt ratings to BBB+, three steps above junk
  • Moody’s, Fitch are looking at also lowering company’s grades
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GE Names Culp to Replace Flannery as CEO

Even General Electric Co.’s new savior may not be able to save the company’s credit ratings.

S&P Global Ratings on Tuesday cut GE’s bond grades to three steps above junk. Moody’s Investors Service and Fitch Ratings have said within the last 24 hours that they may downgrade GE’s debt as well, citing trouble at the company’s power unit. Debt markets have expected such moves for most of this year, and its bonds trade as if they’re in the lowest reaches of investment-grade, said Joel Levington, senior credit analyst at Bloomberg Intelligence.