Moody's places ratings of GE, GE Capital under review for downgrade
Moody's Investors Service has placed the ratings of General Electric Company and GE Capital Global Holdings, LLC and its subsidiaries on review for downgrade, including the A2 senior unsecured debt rating and the P-1 short-term rating. A potential downgrade of the long-term ratings of GE and GE Capital may not be limited to one notch. Moody's intends to address this review within the next few weeks. This rating review was prompted by GE's announcement that, due to weaker performance in the Power business, the company will fall short of its guidance for free cash flow and EPS for 2018 and that it expects to take a goodwill impairment charge related to the Power business that is likely to constitute substantially all of Power's current goodwill balance of approximately $23 billion. The change in GE's CEO and chairman was an additional consideration for the review.