Underscoring the size of the issue, Moody’s stated that GE’s “very elevated leverage” may lead it to downgrade the corporate’s score by a number of notches. Ratings downgrades could make it costlier for firms to borrow cash.
The excellent news is that S&P up to date its outlook on GE to “stable” as a result of the firm expects leverage and money stream will enhance within the coming years.
But GE’s funds have deteriorated additional. S&P listed the dividend as certainly one of a number of levers Culp may pull to scale back debt.
In a press release, GE stated it has a “sound liquidity position” that features money and working credit score traces.
Repeating feedback made by Culp on Monday, GE stated it stays “committed to strengthening the balance sheet including deleveraging.”