The company asserts that speculation about whether it could maintain sufficient capital is exaggerated. The US group General Electric, punished in the markets this week by fears about its rating, recently said that its financial arm has no liquidity problems. GE Capital does not need additional funds and said that it will be profitable this quarter.

Company executives said it would require “an incredibly disastrous economic situation” for them to resort to help in funds and additional capital. GE very recently slashed its dividend for common shares, while the agency Moody’s warned it is reviewing the company’s rating of ‘AAA.’ GE has a wide variety of businesses ranging from jet engines to light bulbs.

The company has not held talks with billionaire investor Warren Buffett who, last year, spent $3 billion on the conglomerate through his Berkshire Hathaway firm. Market denizens see the Buffett investment as a sign of confidence. GE is also planning to issue an additional $12 billion in common stock.

Throughout the 1990s, GE Capital was a profit engine to reckon with. It undeniably fired up the amazing ascent of the company’s stock price during that decade. The current financial crisis has changed all that. Asked about the possibility that GE is a victim of ‘manipulation,’ the head of GE said: “We are in a cycle of negative news.”

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Via Reuters