Moody's may cut GE

Moody's Investors Service said it placed the long-term ratings of General Electric Co. (Aaa senior unsecured) and General Electric Capital Corp. (Aaa senior unsecured) on review for possible downgrade.

The firms' Prime-1 short-term ratings were affirmed, the agency said, adding that the review also has no impact on the FDIC-guaranteed debt issued by GECC, which remains at Aaa with a stable outlook.

Moody's said the review for downgrade is based primarily upon heightened uncertainty regarding the company's asset quality and earnings performance in future periods.

According to the agency, General Electric Capital Services recorded a $1.5 billion consolidated pre-tax loss from continuing operations for the fourth quarter of 2008 on higher credit and other charges.

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