New York, December 18, 2015 -- Moody's Investors Service assigned an A3 rating to General Electric Company's (GE) revised $5.9 billion preferred stock issuance (Series D), which is intended to replace the company's previously issued multi-tranche preferred securities (Series A, B & C; see press release announcement dated December 2, 2015) with a more economically attractive package of financial and other terms for existing investors. Existing ratings for the company remain unchanged, including the A1 senior unsecured debt rating and the Prime-1 short-term commercial paper rating. The new preferred stock will continue to be a direct obligation of GE, and the servicing of this security is still expected to be fully satisfied (indirectly) by the company's finance subsidiary, GE Capital Global Holdings, LLC, which recently replaced the former General Electric Capital Corporation (taken together, GE Capital) in a complex reorganization. The approximate $5.9 billion liquidation preference is unchanged from the original issuance, but the dividend rate has been increased by almost 20% (costing GE about $54 million more in annual payments, if made, on the non-cumulative securities). An upfront payment of approximately $24 million will also be made to the former Series A & B security holders as an inducement to achieving a more amicable resolution and the avoidance of an otherwise likely legal action on the grounds of insufficient value awarded for their securities in the context of the former exchange. The rating outlook is stable.

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