GE debt fears are overblown, analyst says

|About: General Electric Company (GE)|By:, SA News Editor

General Electric (GE +2.7%) edges higher as Peter Tchir of Academy Securities argues the market's fears about GE's bonds are overblown.

GE shares fell for months before its credit spreads started to widen, which Tchir believes shows "the current concern surrounding the credit can be fixed."

"GE should not see a material increase in their total cost of borrowing in 2019, despite spread widening in the secondary markets because of their debt profile," Tchir writes, as ~$26B of the company's $105B of debt is maturing in the next two years, mostly in 2020.

Many analysts are worried about the consequences of a potential downgrade of GE's credit to junk; it is the world's no. 6 most indebted non-financial company, big enough to shake the entire debt market.

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