Rating agency Moody's Investors Service decreased the credit rating of General Electric Co (GE) one level from Aa2 to Aa3. This was due to the high level of risk of GE Capital Corp. in financing sector.
Previously, GE lowered its credit rating of GE Capital Corp. as much as two levels from Aa2 to A1 with a stable outlook. In a report released Wednesday, April 4, 2012, Moody's said the scale of the business making of GE Capital is very dependent on funding from financial markets.
"It is very risky in the midst of the financial crisis today," according to Moody's opinion as quoted by the Associated Press .
On the other hand, Moody's also said that GE has a strong cash flow and high profitability. GE's performance was expected to continue to improve, especially in the infrastructure sector.
Moody's notes GE's infrastructure business has a turnover of U.S. $ 200 billion, which is very important as a source of income in the future.
On the other hand, the management of GE Capital GE said the business is still quite healthy. GE Capital pocket the cash claims valued at U.S. $ 80 billion and has a healthy balance sheet.
"Moody action based on changes in their own assessment methods rather than the condition of our business is increasing in recent years," GE said in a statement as quoted by the Wall Street Journal. - https://www.affordablecebu.com/
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"Moody's lowers GE's credit rating" was written by Mary under the Business category. It has been read 1491 times and generated 1 comments. The article was created on 08 May 2012 and updated on 08 May 2012.
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