S&P downgrades debt-riddled GE and GE Capital
Underscoring the scale of the problem, Moody’s said that GE’s “very elevated leverage” could lead it to downgrade the company’s rating by multiple notches. Ratings downgrades can make it more expensive for companies to borrow money.
The good news is that S&P updated its outlook on GE to “stable” because the firm expects leverage and cash flow will improve in the coming years.
But GE’s finances have deteriorated further. S&P listed the dividend as one of several levers Culp could pull to reduce debt.
In a statement, GE said it has a “sound liquidity position” that includes cash and operating credit lines.
Repeating comments made by Culp on Monday, GE said it remains “committed to strengthening the balance sheet including deleveraging.”
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