Canaccord Genuity Morning Coffee on General Electric (GE): It's Electric!
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Price: $161.26 --0%
Rating Summary:
20 Buy, 8 Hold, 0 Sell
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Today's Overall Ratings:
Up: 7 | Down: 12 | New: 1
Rating Summary:
20 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 1
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Canaccord Genuity Morning Coffee on General Electric (NYSE: GE): It's electric!
Moody’s lowered its credit ratings on General Electric and its financing subsidiary as it believes there are risks associated with GE’s lending unit. GE’s senior unsecured debt was cut by one notch to Aa3 while GE Capital was cut two levels to A1. Moody’s said that GE’s finance unit could pose risks to the conglomerate in the event of another financial crisis. Moody’s Senior Vice President Russell Solomon said, “We believe that GE's industrial operations continue to have many Aaalike credit characteristics. The downgrade reflects Moody's view of the heightened risk profile inherent to finance companies like GECC, which has strategic importance to GE, rather than any deemed incremental risk related to GE's industrial business lines.” GE responded by saying that it currently has more than $80 billion in cash and a healthy balance sheet. In a statement, management said, “Moody’s actions are based on a change in their own methodology rather than our credit position, which has only improved in the past few years.”
Moody’s lowered its credit ratings on General Electric and its financing subsidiary as it believes there are risks associated with GE’s lending unit. GE’s senior unsecured debt was cut by one notch to Aa3 while GE Capital was cut two levels to A1. Moody’s said that GE’s finance unit could pose risks to the conglomerate in the event of another financial crisis. Moody’s Senior Vice President Russell Solomon said, “We believe that GE's industrial operations continue to have many Aaalike credit characteristics. The downgrade reflects Moody's view of the heightened risk profile inherent to finance companies like GECC, which has strategic importance to GE, rather than any deemed incremental risk related to GE's industrial business lines.” GE responded by saying that it currently has more than $80 billion in cash and a healthy balance sheet. In a statement, management said, “Moody’s actions are based on a change in their own methodology rather than our credit position, which has only improved in the past few years.”
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