Ge: Credit Rating Cut.

This from 24/7 Wall Street on the GE credit rating cut this morning.

General Electric Co. (NYSE: GE) has finally been given this expected ratings agency downgrade this morning. This has been telegraphed for nearly three months. What is interesting is that the company is trading up on the news as this is not as bad as many might have been expecting.The downgrade was taken to AA+ from AAA for the long-term rating. Where this gets interesting is that the rating outlook is actually now STABLE. What that means in effect is that there are fewer reviews and a much lower chance that any more downgrades will be given in the immediate term.
General Electric Capital Corporation was also lowered To AA+ from AAA; but this does not affect the company’s ‘A-1+’ short-term funding ratings. Its outlook is Stable.
Despite the rating like this, GE is still apparently the highest rated of financial capital companies. Interestingly enough, the stock is UP 4% at $8.83 right before the open.

Link: http://247wallst.com/2009/03/12/sp-cuts-ge-a-mere-formality-ge/

*Long legacy positions in GE in various client accounts and long GE via options in select client accounts.