GE Downgrade Powers Up Debt Headwinds
Moody’s cites issue with its flagship H-class gas turbines as a potential continuing risk.
Trouble with the turbine.
Photographer: Jason E. Miczek/Bloomberg
It’s just another day in the slow unraveling of the old General Electric Co.
Moody’s Investors Service on Wednesday lowered the troubled industrial conglomerate’s credit rating by two notches to Baa1, citing the damage wrought to GE’s cash-flow prospects by the continuing deterioration of its power unit. The ratings reduction is something of a formality. GE’s disclosure earlier this month of an earnings shortfall and a $22 billion goodwill writedown in its power unit prompted Moody’s to put its rating on review for downgrade. S&P Global Ratings made a similar cut on Oct. 2, lowering GE’s rating to BBB+ from A.