Fitch: GE Divestment Highlights SIFIs' Capital Allocation Focus

April 15, 2015 3:05 PM

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(The following statement was released by the rating agency) NEW YORK, April 15 (Fitch) General Electric's planned divestment of the majority of GE Capital Corporation (GECC) highlights the increasing capital allocation focus for U.S. systemically important financial institutions (SIFIs), says Fitch Ratings.

Fitch believes that management's key aim with the divestitures is to boost GE's equity valuation through the disposal of substantial parts of GECC while refocusing on its core industrial businesses. GE will also seek de-designation as a SIFI, which if successful, should reduce the additional capital...

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