Credit Analysts Wary of GE’s New Debt Plan
Analysts at Moody’s aren’t a big fan of General Electric Company (NYSE:GE)‘s plan to bring $20 billion more in debt onto its balance sheet. Although taking on more debt at a time when interest rates are low could pay off in the long run (if used correctly), the analysts believe that GE’s plan could pressure its credit metrics, which could lead to higher interest rate costs down the road. GE currently has a senior unsecured debt rating of A1 according to Moody’s. Warren Buffett‘s Berkshire Hathaway owned more than 10 million shares of General Electric Company (NYSE:GE) at the end of June.
Upgraded PlayStation 4’s On The Way
Sony Corp (ADR) (NYSE:SNE) is in the spotlight after the Wall Street Journal reported that the Japanese conglomerate will introduce two updated versions of its hit PlayStation 4 console in September. One version will be a high-end machine that will appeal to hard-core fans with enhanced graphics capabilities, while the other version will be a slimmer, more affordable version that Sony hopes will attract more casual users. Given the intense competition it faces in TV’s, cellphones, and other electronics, Sony needs its PlayStation division to be strong for its finances to do well. 14 funds in our system held the ADR’s of the Japanese company in their portfolios at the end of June, down by four funds quarter-over-quarter.
Vale in the Spotlight Due to Bloomberg Article
According to a Bloomberg article, China’s sovereign wealth fund, China Investment Corp, is currently negotiating a multi-decade, multi-billion dollar iron ore streaming deal with Vale SA (ADR) (NYSE:VALE) that could potentially result in as much as $9 billion in upfront payments. If successfully completed, the deal would help Vale deleverage and could help improve sentiment for the stock. Vale has a net debt of around $27 billion. According to our database, 24 hedge funds had a bullish position in Vale SA (ADR) (NYSE:VALE) at the end of the June quarter.