S&P lowers General Electric

S&P said it lowered its long-term corporate credit rating on General Electric Co. and GE Capital Global Holdings LLC to A from AA-. The outlook is stable.

At the same time, S&P lowered the short-term rating on both companies to A-1 from A-1+. S&P also lowered the issue-level ratings on GE's debt in conjunction with the downgrade of the company in accordance with S&P’s corporate notching methodology.

“We now view Baker Hughes, A GE Company (BHGE) and Baker Hughes, a GE company LLC to be nonstrategic to parent GE based on GE's stated intention to evaluate alternatives for its ownership,” S&P said in a news release.

“The downgrade reflects our assessment that GE's debt leverage will be higher and its cash flow will be weaker in 2018 (and perhaps in 2019) than we had previously expected,” S&P said in the news release.

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