Standard&Poor's Ratings Services' 'AAA' rating on General Electric Capital Corp. (GECC) reflects ownership by General Electric Co. (AAA/Negative/A-1+) through General Electric Capital Services Inc. (GECS; AAA/Negative/A-1+); GECC's strong, well-managed business franchise; its large scale and resources; its relatively good credit quality; and management's debt reduction plan. However, we are concerned about GECC's aggressive financial leverage and high degree of reliance on wholesale funding sources–-notwithstanding management's ongoing actions to reduce such financial risks–-and accelerating pressure on earnings from rising credit losses in the current tough economic environment. Excluding the potential for additional support from GE, we have always viewed GECC's hypothetical stand-alone credit profile as being weaker than 'AAA'; our current assessment is 'A+'. GE has reaffirmed its support
