S&P lowered its outlook on General Electric’s debt ratings to “negative” on Thursday, a move that could cost the conglomerate its pristine credit grade if profit from its GE Capital finance arm falls more than expected. S&P’s action comes two days after GE executives sought to reassure investors the company would outperform its peers amidst the global economic downturn. While S&P affirmed GE’s ratings, the agency said there was at least a one-in-three chance it would cut GE’s grade from triple-A within the next two years. GE’s shares plunged 8% on Thursday following the announcement.
