SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.19-1.8%Dec 12 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: H James Morris who wrote (144610)8/2/2002 3:26:54 PM
From: Alomex  Read Replies (1) of 164684
 
A while back we talked about potential problems with GE capital. Here's a tidbit from the Economist (http://www.economist.com):

A large part of GE Capital's success has come from the low financing costs that flow from having a triple-A credit rating. The company's bonds have, however, recently traded at prices that imply that a lower rating is warranted. Nominally, GE Capital has debt equivalent to eight times equity, a comfortable enough level of leverage, says Moody's, a rating agency. But if the goodwill from acquisitions is subtracted from equity, and off-balance-sheet financing (modest till now because of GE's top-notch rating) is added back in, then GE Capital's leverage rises to a heady 17-to-1. Investors, then, might conclude that GE will have to throttle back on acquisitions, adversely affecting both growth and return on equity.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News