S&P revises General Electric view to negative

S&P said it affirmed its BBB+ issuer credit rating and A-2 short-term rating and revised the outlook to negative on General Electric Co. and GE Capital Global Holdings LLC.

“The affirmation reflects our view that debt leverage could increase to reach the mid- to high-3.0x range in fiscal 2020 but drop below 3.0x in fiscal 2021, with the deployment of excess cash toward debt reduction and some recovery in aviation end markets,” S&P said.

“The negative outlook reflects our view that there is a roughly one-third chance that debt leverage may not decline below mid-3.0x in 2021 should aviation markets fail to start recovering later this year, perhaps in conjunction with a deeper-than-expected economic recession and lengthy recovery worsened by lingering social distancing dynamics.”

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