GE downgraded

More

This morning, the giant conglomerate exited the now-even-more-select ranks of companies with a AAA bond rating.   S&P announced that is was downgrading the company's debt to AA+, with a note that it mostly meant you should start worrying about GE's long-term debt . . . though not worrying very hard.

What happened next was surprising, in a "What the goddamned $@%! hell just happened?" sort of way:  the stock price rose 8%.  This is about 1600 basis points more than you would expect.  The market had clearly already priced in the risk of a downgrade, and Immelt's statement that the company was prepared to operate as a AA+ company sounded soothing even to me.

Jump to comments
Presented by

Megan McArdle is a columnist at Bloomberg View and a former senior editor at The Atlantic. Her new book is The Up Side of Down.

Get Today's Top Stories in Your Inbox (preview)

Is Technology Making Us Better Storytellers?

How have stories changed in the age of social media? The minds behind House of Cards, This American Life, and The Moth discuss.


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Business

Just In