Wednesday, October 7, 2015

S & P plans to lower the rating of General Electric – Romandie.com

S & amp; P is considering lowering the rating of General Electric


New York – The Standard & amp rating agency; Poor’s is considering lowering the rating of financial solvency of General Electric (GE), citing pressure on the leadership of the influential activist Nelson Peltz, new shareholder of the industrial conglomerate.

GE is rated AA +, one of the best notes, S & amp;. P, which however lowered Wednesday against stable to negative before the prospect to match that assessment

The decision means that the note could be degraded in the short term, unless the concerns of the agency are allayed

S & amp;. P particular concerns that the new shareholder GE obtains management a significant increase in operations buybacks, which may weaken, says the Agency, leverage of the group.

We believe that investment Trian (the fund Mr. Peltz) will increase the pressure on the GE management to adopt a more favorable financial policy to shareholders detriment of the financial stability of the company, deplores S & amp; P

In addition to its cash distribution to shareholders, GE could also be pushed to make acquisitions, feared the agency

The American billionaire revealed Monday it has invested $ 2.5 billion in GE, after two years of assiduous court.

This sum, the biggest investment in Mr. Peltz company represents 1% stake in GE and made him one of the top ten shareholders of the industrial conglomerate known for its aircraft engines, turbines and locomotives her.

If it has not ask for the time to sit on the board or split of the company, Mr. Peltz called for greater ROI for shareholders.

lo / JLD / bp

GENERAL ELECTRIC

(© AFP / October 7, 2015 4:47 p.m.)

(AFP / 07/10/2015 4:49 p.m.) ->
 

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