The hits just keep coming for GE.
Once a stalwart of US manufacturing might, General Electric Co (NYSE:GE) has been in retreat over the past year as it has downsized operations, been booted off the Dow Jones Industrial Average, fired its CEO and watched its once-vaunted market capitalization get cut in half.
Today, GE's creditworthiness took the latest hit as Standard & Poor’s lowered its long-term rating on the Boston-based conglomerate to BBB+ from A.
"The downgrade reflects our assessment that GE's aggregate competitive position no longer supports a rating in the 'A' category, absent leverage coming down far more than we currently assume,” according to S&P’s report.
The ratings agency did raise its outlook from negative to stable in the same report, citing improved credit metrics and cash flow from asset sales over the next couple of years.
The ratings cut came just hours after Moody’s announced that is was placing GE’s creditworthiness under review for a downgrade
Moody’s said the review was prompted not only by the abrupt change in leadership but also by weakness in its power business, disappointing guidance, and the expected goodwill impairment of $23 billion.
GE shares rose 2.5% to $12.40 in afternoon trade in New York.