GE Credit Rating Cut by Moody's as Power Unit's Woes Deepen
- Ratings company sees weaker demand, falling orders, ‘missteps’
- Troubled manufacturer says it’s strengthening balance sheet
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General Electric Co.’s credit rating was cut by Moody’s Investors Service, a day after the manufacturer said the outlook was deteriorating at its marquee power division.
Moody’s lowered its long-term rating on GE two notches to Baa1, or three steps over junk, following a similar reduction four weeks ago by S&P Global Ratings. GE’s cash flow is under pressure as its power-equipment unit struggles with falling demand for gas turbines and a drop in orders, Moody’s said in a report Wednesday.