Moody's Downgrades GE Debt on News it Will Sell GE Capital Assets

Shares of General Electric (GE) are climbing in Friday trading after the company announced it expects to sell off most of assets of its financial unit, GE Capital, over the next two years. By 2018, GE plans that its core industrial businesses will account for more than 90% of its earnings, up from 58% last year. GE Chairman and CEO Jeff Immelt called the move a 'major step' in the company's strategy to focus around its competitive advantages. Following the move, Moody's downgraded GE's unsecured debt rating, calling it a 'decisive indication that the company's policies have shifted to a more aggressive posture.' Moody's said it reflects a growing level risk tolerance in favor of equity holders versus creditors.