Moody's keeps GE, General Electric Capital on review

Moody's Investors Service said its review for possible downgrade of the long-term ratings of General Electric Co. (Aaa) and General Electric Capital Corp. (Aaa) continues subsequent to GE's announcement that it will reduce its annual dividend by 68% from an quarterly rate of $0.31 per share to $0.10 per share.

The agency said the dividend reduction will address some of its concerns regarding the stress on GE's cash flow, but Moody's review remains centered on General Electric Capital's performance prospects given the deteriorating trends in asset quality, the headwinds facing the industrial segment's cash flow as a result of the global economic downturn and continued tight credit market conditions.

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