Moody's drops GE, GECC

Moody's Investors Service said it downgraded the senior unsecured debt ratings of General Electric Co. and General Electric Capital Corp., and subsidiaries, to Aa2 from Aaa.

The rating assigned to debt that GECC has issued under the FDIC Temporary Liquidity Guarantee Program was affirmed at Aaa, the agency said, noting that the Prime-1 short-term ratings of both firms were also affirmed.

The outlook for all is stable.

In Moody's view, GE has primary credit risks centered on its position as a major financial institution through GECC and the rating downgrade reflects Moody's opinion that the risk profile of GECC has increased and is now reflective of credits rated in the mid-A category without considering support from GE.

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