S&P assigns A1 to GE Capital EFS

Moody's Investors Service said it assigned an A1 issuer rating to GE Capital EFS Financing Inc. (EFS Financing) with a stable outlook.

The agency also expects to assign issuer ratings of A1 and Prime-1 to GE Capital Global Holdings, LLC (Global Holdings), pending a forthcoming corporate reorganization of current parent General Electric Capital Corp. (GECC, A1 stable).

The ratings of GECC and ultimate parent General Electric Co. (GE, A1 stable) are not affected by the actions.

Moody’s said the A1 rating assigned to EFS Financing is based on the irrevocable and unconditional guarantee of GECC and planned subsequent assignment of the guarantee to Global Holdings. In a corporate reorganization expected to occur by year-end, GECC will be merged into GE and Global Holdings will become the new holding company of GE's finance operations.

The A1 rating Moody's expects to assign to Global Holdings is based on strong anticipated support from ultimate parent GE, as well as the baa2 stand-alone credit profile of the company's consolidated lending and leasing businesses, the agency said.

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