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’GE addresses investor concerns
General Electric predicted its finance arm would remain profitable next year, even as loan-loss provisions climbed, and reassured investors the unit would not need more capital from its parent until at least early 2011.
CDS report: Europe ends flat as green shoots wither
This CDS report was written by Markit’s Gavan Nolan
The Markit iTraxx Europe index finished the day flat at 122bp, However, this masked a session of considerable volatility, with nervous investors looking for direction.
CDS update: Markets resilient despite weakening sentiment
This CDS report was written by Markit’s Gavan Nolan
European credit markets gave back some of their gains from yesterday as the positive sentiment surrounding financials faded. But the spread widening at the close was modest compared to the morning session.
GE denies unit needs more cash
General Electric on Tuesday disputed an analyst’s suggestion that the division may need more cash, saying a recent $9.5bn equity infusion into the conglomerate’s GE Capital unit would cover its obligations should the finance arm trip a fixed-charge covenant on its debt.
Concerns grow over GE Capital
Investors’ discomfort with General Electric’s exposure to the troubled financial services industry deepened on Monday after an analyst warned that the conglomerate might need to inject more equity in its GE Capital division.
GE to inject $9.5bn into finance arm
General Electric plans to shore up the balance sheet of its finance arm, GE Capital, by diverting the remaining $9.5bn in cash from the conglomerate’s stock sale last year. The move, which follows last quarter’s $5.5bn capital infusion,
Agencies give GE breathing space
The two top credit rating firms appear willing to give General Electric every opportunity to justify its triple A ratings, long after debt investors, equity analysts and even GE’s own executives have started to brace themselves for a downgrade.
Moody’s could cut GE rating
Moody’s Investors Service said Tuesday it was reviewing General Electric’s triple-A credit ratings, which could lead to a downgrade, and its shares fell as much as 5% in extended trade, reports Reuters.
Another knock for GE as Moody’s warns on rating
Following in S&P’s footsteps, Moody’s on Tuesday warned that GE is at risk of losing its triple-A rating.
Here’s the statement, emphasis FT Alphaville’s:
Jan 27 – Moody’s Investors Service placed the long-term ratings of General Electric Company (Aaa senior unsecured) and General Electric Capital Corporation (GECC;
S&P cites liquidation risks
US companies face a greater risk of liquidation because sources of finance that would allow them to reorganise under the US bankruptcy code are drying up in the financial crisis, S&P has warned. In the US,
GE launches $10bn FDIC-backed debt
General Electric’s finance arm on Monday launched a $10bn sale of FDIC-backed debt, the largest sale under the US government’s Temporary Liquidity Guarantee Program since its inception last November,
GE could lose its triple-A, S&P says
Is nothing sacred? (Answer: no)
GE could lose its shiny triple-A rating within the next two years, S&P said on Thursday, citing concerns around earnings and cash flow. Likelihood of such a thing? One in three,
GE offers assurance on credit
General Electric is willing to extend more financing to customers of its industrial businesses next year to keep key energy, transportation and water projects on track even if credit markets remain frozen,
GE to slash $2bn in costs at finance arm
General Electric is to shrink GE Capital, its finance arm, in a move that could lead to $2bn in cost cuts, the sale of $90bn in highly leveraged assets and thousands of redundancies among its 75,000 employees.
GE gains (more) federal help
General Electric’s financial arm won a federal guarantee on its debt on Wednesday, the second time in a month that the conglomerate has turned to the US government to help ensure its businesses can continue to tap the capital markets for funding,
DTCC publishes data on CDS market
Credit-default swaps totaling $33.6 trillion are outstanding on government debt, corporate bonds and asset-backed securities worldwide, the Depository Trust & Clearing Corp said after releasing data on the unregulated market on Tuesday.
GE Capital scales back lending
General Electric’s finance arm has significantly reduced its lending activities to middle- market private equity firms over the past few weeks as the credit crisis takes a toll on its ability to finance leveraged buyouts.
GE Capital to cash in on real-estate lending
General Electric’s financial-services arm, which has dodged the brunt of the credit crunch by shunning US mortgages and other risky assets, is extending its push into corporate and commercial real-estate debt to capitalise on the dearth of rival lenders in these markets.
Wilbur Ross, Blackstone, GE Capital eye India’s IFCI
An interesting contest is heating up in India for a big chunk of the state-run Industrial Finance Corporation of India, as the FT reports that US billionaire investor Wilbur Ross, Blackstone and GE Capital are among 10 high-profile suitors interested in a 26 per cent stake offered by IFCI as part of the troubled financier’s turnround plan.
US shoots down $295m AsiaSat deal
The US state department has shot down a proposed $295m deal to take private the Hong Kong-based satellite operator Asia Satellite Telecommunications, invoking export approval powers dating back to the cold war.
BNP backs out of bid for Poland’s BPH
BNP Paribas has become the latest bank to back out of the bidding for Poland’s BPH, the rump of a bank left after consolidation of two local banks owned by Italy’s UniCredit. The remaining serious bidders are thought to be France’s Crédit Mutuel and GE Capital of the US.