GE Whacked After Hours On Possible Downgrade

Let’s just get this over with. At some point, probably before too long, GE will likely lose its coveted AAA rating, and then we can stop obsessing over it. This evening, the stock is getting whacked after news that Moody’s might at some point downgrade the company’s unsecured debt.

Reuters: “Moody’s is concerned that deepening global economic weakness could further compromise (GE Capital’s) asset quality, potentially jeopardizing its ability to meet earnings objectives while also maintaining high earnings quality,” the rating agency said

GE said it would work with Moody’s on the rating, but that losing it would not significantly change its operations.

This is the same dance that S&P is pulling. Talking about downgrading their debt, rather than just doing it. Meanwhile, if GE means what it’s saying that it can continue to operate as normal sans-AAA, that’s even more reason to just end the whole charade.

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