7:34 a.m. March 10, 2021
- By Tomi Kilgore
GE credit rating on track to be downgraded at S&P Global after GECAS dealGeneral Electric Co.'s credit rating is headed toward a downgrade at S&P Global Ratings, which said to combine its aircraft leasing business, GE Capital Aviation Services (GECAS), with AerCap Holdings NV increase GE's debt leverage more than previously expected. S&P said it placed GE's BBB+ rating on CreditWatch with negative implications, and expects a one-notch downgrade to BBB, which is two notches above "junk" status, in about 10 to 12 months. The GECAS deal is valued at more than $30 billion for GE, with proceeds expected to be used to reduce debt. However, the remaining assets of GE Capital, which S&P Global had previously treated as a captive finance unit, will be incorporated into GE, and is expected to increase GE's debt leverage to about 6.0X. Meanwhile, fellow credit rating agency Moody's Investors Service affirmed GE's Baa1 credit rating, which is three notches above "junk," and affirmed the negative outlook, while Fitch Ratings affirmed the BBB rating -- 2 notches above "junk" -- and stable outlook. GE's stock, which fell 5.7% in midday trading, has gained 16.6% over the past three months, while the S&P 500 has advanced 6.4%.
1:59 a.m. Sept. 26, 2020
- By Sadagopa Iyengar
‘Buses are packed, as are shops and markets’: India’s rising COVID-19 infections are rapidly catching up with the U.S. ‘The police have mopped up a tidy sum by way of fines for mask-wearing noncompliance, though social distancing is not being enforced’‘The police have mopped up a tidy sum by way of fines for mask-wearing noncompliance, though social distancing is not being enforced.’
10:51 a.m. July 25, 2020
- By Keith Jurow
The feared jumbo mortgage debacle is here — thanks to the coronavirus — and ready to pound the housing market COVID-19 pandemic is squeezing borrowers’ ability to stay in their homesCOVID-19 pandemic is squeezing borrowers’ ability to stay in their homes, writes Keith Jurow.
2:51 a.m. May 7, 2020
- By Ciara Linnane
Fitch downgrades General Motors rating to one notch above junk Fitch Ratings downgraded General Motors Co.'s long-term issuer default rating to BBB-minus from BBB, putting it one notch above junk status. The rating agency also downgraded GM Financial's IDR to BBB-minus, and said both ratings outlooks are stable. The move is based on the expectation that the auto giant's credit profile will remain weak for a prolonged period, against the macroeconomic environment caused by the coronavirus pandemic. "Fitch expects the macro environment to remain weak through the rest of 2020 and much of 2021, which will likely keep sales volumes well below the 2019 level into much of 2022," the agency said in a statement. "The company's more concentrated operations, with its automotive FCF completely dependent on the North American and Chinese auto markets, could also pose some risk in the future, although it has resulted in less cash burn in the current environment." GM's ratings and stable outlook reflect the company's strong liquidity position and the expectation that it will retain and investment-grade rating once the peak of the pandemic has passed. GM shares were up 1.8% premarket, but have fallen 40% in the year to date, while the S&P 500 has fallen 12%.