Defaulting banks - where will it stop?

[Magda Hassan]

GE downgraded...Did you place that bet then Jan ?

General Electric debt rating cut

US conglomerate General Electric had its debt rating lowered by ratings agency Standard and Poor's.

Its rating has been cut from AAA, the highest rating, to AA+. The action may make it more expensive for GE to borrow in the future.

The downgrade is significant because GE is viewed as a barometer of the health of the US economy.

GE last month cuts its dividend, a move it said would save it $9bn a year as it sought to shore up its finances.

"While no one likes a downgrade, this review and rating reaffirm the relative strength of the company," said GE Chief Executive Jeff Immelt.

GE's finance unit GE Capital has been hit because it makes a wide variety of loans, including mortgages, that have since seen their value plummet.

The economic downturn has also hit its industrial unit, which makes aircraft engines, home appliances, light bulbs and wind turbines.

The ratings downgrade means that S&P now considers GE less likely to pay back its debts. However, the agency considers GE's outlook stable.

"We are prepared to fund the company as a double-A, but we will continue to run GE with the disciplines of a triple-A," Mr Immelt said.

The company said it did not expect any impact on the way it funds itself from the ratings downgrade.

http://news.bbc.co.uk/1/hi/business/7940191.stm

Every clound has a silver lining :congrats:. I just came across info (maybe old though 2002) from the Centre for Public Integrity http://www.publicintegrity.org/articles/entry/399/ that Richard Armitage has between $500,000 to 1million in GE stocks. Rumsfeld too. Boo hoo.