Steep fall in General Electric's bonds to junk levels is roiling markets

GE stock has lost about half its value in 2018 and ratings firms in recent weeks cut its credit rating to BBB-plus, three notches above junk.

General Electric amassed $115 billion of debt on a reputation as one of the U.S.’s safest borrowers. But revelations of losses and questions about its accounting have brought financial markets to a pivotal moment.

GE had a sterling triple-A credit rating as recently as 2015. This month, investors have pummeled its bond prices into junk territory. Once a giant issuer of ultrasafe commercial paper, it now relies on $41 billion in revolving credit lines from more than 30 banks — the corporate finance equivalent of a wallet stuffed with credit cards.

GE stock has lost about half its value in 2018 and