JP Morgan Said General Electric (GE) Triple-A Rating Not Sustainable And Dividend Will Likely Be Cut

JP Morgan commented on General Electric (NYSE: GE), saying the triple-A credit rating is not sustainable and the dividend will likely be cut. The firm also cut their estimates and price target from $13 to $9.

The firm said fundamental pressures continues to mount on GE's earnings stream, especially at GE Capital.

These two concerns are not new to investors and GE's CEO Jeff Immelt even commented on them yesterday at a conference. Immelt said a ratings downgrade wouldn't change the way he runs the company. He also said the markets have already priced in a credit downgrade. On the divided, Immelt says the company has the cash flow to pay it. Comments from Immelt suggests he may see a rating downgrade coming shortly. Both S&P and Moody's have the company's 'AAA' rating on watch for a downgrade.

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