Shares of General Electric Co. GE, -1.63% slumped 1.5% toward a two-month low, after Fitch Ratings downgrade the industrial conglomerate’s credit rating, and warned that further downgrades may be coming. The stock was headed for a third-straight loss, and has shed 4.8% during that streak. Fitch lowered its rating one notch to A, which is just five notches above “junk” status, from A+. The rating outlook is negative. “The downgrade of GE’s ratings incorporates Fitch’s expectation that the company’s cash flow and earnings will continue to be constrained while it addresses underperformance in the power business, evaluates its business portfolio and carries out extensive restructuring actions to reduce its cost structure,” Fitch said in a statement. Standard & Poor’s also rates GE’s credit at A, while Moody’s Investors Service rates it at A2. GE’s stock has tumbled 24% year to date, while the SPDR Industrial Select Sector ETF XLI, -0.25% has slipped 0.8% and the Dow Jones Industrial Average DJIA, -0.34% has gained 1.5%.
