Moody's Cuts General Electric on Weakness in Power Unit
(Bloomberg) -- General Electric’s long-term and senior unsecured rating was cut to Baa1 from A2 by Moody’s as the rating agency cites "the adverse impact on GE’s cash flows from the deteriorating performance of the Power business."
- Impact from power business will be considerable and could last some time
- Weaker than expected performance of power business also due to co.’s "misjudgment of financial prospects and operational missteps"
- Outlook stable predicated on Moody’s view that co. will be able to contend with the challenges posed by its power business
- NOTE: Oct. 30, GE Sinks to 2009 Low as Accounting Probes Add to CEO’s Woes, GE Third Quarter Adjusted EPS Misses Lowest Estimate
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