Moody's may cut General Electric from top AAA

Discussion in 'Stocks' started by makloda, Jan 27, 2009.

  1. It seems it took them 5 minutes of analysis until they stamped AAA on trillions worth of toxic debt, but it takes them months to arrive at the conclusion GE might not be AAA?

    NEW YORK, Jan 27 (Reuters) - Moody's Investors Service on Tuesday said it may cut its top ratings on General Electric Co (GE.N) and its finance arm, citing increased uncertainty over General Electric Capital Corp's (GECC) asset quality and future earnings performance.

    General Electric Capital Services (GECS), GECC's parent unit, is also expected to post higher credit losses than previously expected, Moody's said in a statement.

    "Moody's is concerned that deepening global economic weakness could further compromise GECS' asset quality, potentially jeopardizing its ability to meet earnings objectives while also maintaining high earnings quality," the rating agency said. (Reporting by Karen Brettell; Editing by Dan Grebler)
  2. Daal


    Its going to be priceless to hear the folks at cnbc once the axe comes
  3. Instead of an "incremental" downgrade from AAA to AA, it has to be a "quantum" downgrade from AAA to D, further confirming the irrelevancy of the ratings agencies. :cool:
  4. Can they downgrade it from AAA to triple EYYY? :D