S&P lowers General Electric view to negative

Standard & Poor’s said it affirmed General Electric Co.’s AA+ corporate credit rating.

The outlook was revised to negative.

The outlook revision reflects a belief that General Electric could adopt a less conservative financial policy than currently incorporated into the ratings, S&P said.

While the company is expected to maintain a leverage at levels that are consistent with a modest financial risk profile until it exits the bulk of General Electric Capital Corp.’s non-core business lines, the agency said it believes that the company could pursue increased share buybacks or acquisitions to significantly increase its leverage.

Because the company’s financial policy is currently evolving, its post-General Electric Capital’s long-term capital allocation plans are uncertain, S&P said.

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