The global spread of the COVID-19 infection had led to the shutdown of a large number of enterprises. This poses a serious risk to them. Some of the companies may suffer a decline in production and a subsequent drop in ratings. The US industrial conglomerate General Electric has met a similar fate.
The international rating agency Fitch Ratings downgraded the Long-term Issuer Default Ratings (IDRs) for General Electric Company and GE Capital Global Holdings (GE Capital) to BBB from BBB+. Nevertheless, the overall outlook for the companies remained stable.
General Electric specializes in the production of gas and steam turbines for power plants, aircraft engines as well as medical equipment. Fitch Ratings believes that the conglomerate’s credit profile is likely to be constrained by the impact of the coronavirus pandemic. The ongoing situation frustrates the company's efforts to increase profitability.
