Moody's on Tuesday said it had downgraded the ratings of conglomerate General Electric Co (GE.N) by one notch to Aa2 and the ratings of its finance unit General Electric Capital Corporation (GECC) by a notch to A1.
Moody's affirmed the Prime-1 ratings of both companies and said the rating outlook for both was now stable. The move concludes a review begun on March 19.
"The downgrades result from the implementation of Moody's revised global rating methodology for finance companies, and reflect in particular the impact of GECC's higher risk profile on GE," the agency said in a statement.
Moody's added that, while GECC had improved its liquidity and capital levels since the credit crisis, there remained material risks associated with the firm's funding model.
(Reporting by Wayne Cole)
Reuters