unit GE Capital Corp," S&P said in a statement. "We believe that GECC is under increasing earnings pressure, due to recent sharp deterioration in general economic conditions around the globe.
"This will result, in our opinion, in rising credit losses across key segments of its finance portfolio. This is also causing weakening of the value of its real estate holdings and investment securities," S&P said.
S&P lowered its outlook on GE's ratings to "negative" in December. A month later, Moody's Investors Service took a stronger step, putting its ratings on review for possible downgrade.
