S&P downgrades debt-riddled GE and GE Capital

S&P downgrades debt-riddled GE and GE Capital

New York CNN Business —  

New General Electric boss Larry Culp just got a fresh reminder of the debt-riddled balance sheet he’s inheriting.

Barely 24 hours after Culp became CEO, S&P Global Ratings downgraded the credit ratings of GE (GE) and GE Capital. Moody’s and Fitch warned they could do the same.

All three ratings firms cited GE’s elevated leverage and shrinking cash flows – an alarming trend exacerbated by serious problems at GE’s power division. GE said on Monday that plunging profit at GE Power will cause the parent company to miss targets in 2018.

S&P pointed to “deep near-term challenges” at GE Power, which has been hurt by the shift towards renewable energy. More recently, GE disclosed mechanical problems with its gas turbines.

Culp surely has a long to-do list as…

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