Thursday, March 12, 2009

General Electric - Go figure


The downgrade of General Electric from AAA to AA+ by Standard and Poor's was accompanied by a 13% share price bounce. This doesn't seem like a call for happiness, but wait...

Apparently, the good news is that the cut wasn't deeper. It appears that GE's new rating is still well above AA-, a level below which GE faces large cash calls.

No comments: