TEXT-S&P rates GE Capital Corp. notes 'AA+'
Dec 5 - Standard & Poor's Ratings Services said today that it assigned its 'AA+' rating to General Electric Capital Corp.'s (GECC; AA+/Stable/A-1+) proposed senior secured debt offering of up to $1.7 billion. The notes are secured by a first-priority interest in a pool of up to 137 aircraft along with related receivables. We understand the company will use the proceeds for general corporate purposes. The issue rating reflects our criteria, under which we do not rate secured debt higher than the corporate credit rating in the 'AA' category. Standard & Poor's 'AA+' rating on GECC reflects our assessment of the company's ownership by General Electric Co. (GE); GECC's strong, well-managed business franchise; its global scale and resources; management's successful track record in earning solid returns in favorable times and avoiding catastrophic missteps in distressed times; and continuing efforts to bolster liquidity and reduce funding risks. Strengthening asset quality coupled with divestment or run-off of underperforming assets is restoring profitability toward the levels observed before the credit crisis and associated downturn. Also, although GECC has made significant strides in diversifying its funding profile, the company remains largely reliant on wholesale funding sources. Third-quarter results for both GECC and GE reflected strengthening profitability, and were consistent with our expectations. RELATED CRITERIA AND RESEARCH -- Rating Finance Companies, March 18, 2004 -- General Electric Capital Corp., July 10, 2012 RATINGS LIST General Electric Capital Corp. Corporate credit rating AA+/Stable/A-1+ Rating Assigned General Electric Capital Corp. Senior secured debt AA+ Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
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