Crisil puts GE Money arms on Rating Watch

Crisil has placed its ratings on the debt programmes of GE Money Financial Services Ltd (GEMFSL) and GE Money Housing Finance (GEMHF) on 'Rating Watch with Developing Implications'.

This action follows US-based GE Capital Corporation's stated intent to dilute 100 per cent stake in GEMFSL and GEMHF by inducting a partner.

At present, Crisil has ratings of 'AAA/Stable/P1+' and 'P1+' on the debt programmes of GEMFSL and GEMHF, respectively.

These ratings centrally factor in the continued management, funding, and operational support that the two entities derive from GECC. The extent of divestment by GECC in GEMFSL and GEMHF is yet to be finalised.

The key issues that will have a bearing on the outstanding ratings are the extent of divestment by GECC, and the potential partner's credit profile, level of domain expertise, and strategic fit with the acquired businesses.

Crisil will also assess the extent to which GECC retains control over the management of the two entities and the likely timelines for the completion of the divestment.