GE’s Credit Is Under Review for Downgrade by Moody’s
- Higher potential borrowing costs add to new CEO’s challenges
- Power unit’s woes present headwinds, ratings services say
This article is for subscribers only.
General Electric Co.’s credit rating was cut by S&P Global Ratings as two other ratings services said they were weighing similar downgrades, adding to the beleaguered manufacturer’s challenges the day after it appointed a new CEO.
The long-term rating was reduced to BBB+ from A, S&P said Tuesday in a statement. The new level, just three rungs above junk, reflects concerns that GE’s “power business will again cause cash flow and earnings to be below expectations,” S&P said, pegging the outlook as stable.