General Electric Co (NYSE:GE) shares slipped on Monday after Moody’s Investors Service highlighted the conglomerate’s “mounting end-market challenges” saying that they would outweigh any boost to cash flow from the company's move to slash its dividends.
The company’s shares have not fared very well since November 13, when it unveiled its turnaround plan, which included slashing its annual dividend to 48 US cents from 96 US cents.
READ: GE slightly up after moving to cut divi by 50%
Moody’s warned that it expects the “severe deterioration” in GE’s power business to last at least through to 2019.
And that is not all. The ratings agency also sees continued weakness in GE’s oil and gas business. Last week, Moody’s had downgraded GE’s crediting rating to A2 from A1.
GE shares were down 1.29% at US$17.95.