S&P: GE unchanged

Standard & Poor's said General Electric Co.'s (AA+/stable/A-1+) announcement of the parameters for its allocation of growing cash balances will not immediately affect its ratings or outlook.

In S&P's view, GE's plans provide sufficient flexibility for its use of the cash balances if either internal cash generation or calls on cash are worse than the agency assumes. S&P said that importantly, it believes GE will balance cash deployment (for example, share repurchases or industrial acquisitions) and cash sources (asset sales, internal cash generation).

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