GE Capital Swaps Rise After Moody’s Begins Rating Review
Bloomberg reported that the cost to protect debt from GE’s finance unit against a default rose after Moody’s said the business may receive a debt rating lower than the parent company’s because of higher risk.
Moody’s cited a shift in methodology for evaluating finance companies when it put the Aa2 grades of GE and GE Capital under review yesterday for possible downgrade and said they may “no longer be equalized.”
Bloomberg quoted the head of corporate credit at Brookfield Asset Management as saying, “It’s Moody’s deciding to change the rules of the game – there’s not a lot as a company they can do about that.”
To read the Bloomberg story, click here.
Previously on abfjournal.com: