GE Bond

This document is being provided for the exclusive use of TAUSEEF BARI at GEORGETOWN UNIVERSITY. Not for redistribution.
General Electric Credit Research

BI Industrials, North America Dashboard
Joel Levington
Team: Credit
BI Senior Credit Analyst
1. Love Me Tender! GE's Steps in Great Deleveraging: Credit React
(Bloomberg Intelligence) -- THESIS: GE is in Table of Contents

the early innings of a great deleveraging. Credit Considerations Key Topics
We're comfortable that the company has the
Credit Checklist GE's Gift That Can Keep Giving
desire and resources to reduce net debt Credit Drivers - Profits Behind Closed Doors
significantly with asset sales over the next Credit Drivers-Financial Ratings Deep Dive
two years. However, significant operating Liquidity Outlook & Analysis Other Risk Considerations
improvement needs to occur as well, and Valuation
GE will likely face more meaningful
insurance and pension liabilities as rates decline. The recently announced change in CFO could lead the
company to examine the potential of reuniting Chairman Larry Culp with former Danaher CFO Dan Comas.
(09/12/19)
Credit Considerations
Credit Checklist
2. Progress on Great Deleveraging at GE, But Road Ahead Is Bumpy
General Electric has been able to pivot the risk discussion about the company toward operational excellence,
following the announcements of the pending sale of its Biopharma unit for $21.6 billion, and the eventual sell-
downs of stakes in Baker Hughes and Wabtec. Turning a ship the size of GE, including its operating culture, while
navigating an array of end-market challenges, will take time and is likely to encounter some rough tides along the
way. After a massive run this year, credit-default swaps and some bonds are more reflective of this scenario,
though a few issues remain wide, in our view. (05/29/19)
Click for Interactive Excel Sheet
Source: Bloomberg Intelligence
Credit Drivers - Profits
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Bloomberg ® 10/05/2019 16:33:55
Breaking Bad Can Be GE’s $12 Billion Elixir, Healing Bondholders
Achieving the average of its BBB multi-industrial peers' business metrics could swing General Electric's free cash
flow, which would be a massive credit catalyst. Yet that goal is out of reach for years, and underscores the
severity of operating deterioration, which raters haven't fully accounted for. (08/20/19)
3. Business Metrics Don’t Stand Up vs. BBB Peers
If GE had a free-cash-flow margin akin to other BBB industrials such as Eaton, Dover and Xylem, it would
generate about $12 billion of cash in 2019 vs. its improved guidance of $0 at the midpoint. Closing the gap will
require significant improvement in operational execution, specifically in power and renewables, as well as in
aviation, where product ramp-up is affecting cash generation. GE will also need to overcome the more than $1
billion in free cash flow it will lose on the sale of the biopharma unit to Danaher.
Raters have often viewed GE’s diversity as a strength, but they may need to revise views down, given the sale of
transportation, likely disposals of Baker Hughes and the biopharma business, and shrinkage of the finance unit.
S&P calls GE’s business risk strong, or A tier credit quality. (08/20/19)
GE's Ebitda Margins, FCF/Sales Short of BBB Peers
4. GE Culpable of Subpar Metrics for Rankings
After slashing Ebitda forecasts by about 23% in 2019, expectations for GE have settled to a spot that will keep
business metrics under rater pressure. In particular, Moody's target of Ebita margin in the mid-teens looks to be
highly unlikely in 2019-20. That keeps us concerned that rater exhaustion from defending rankings that can't be
supported by fundamental results, may cause them to take further negative actions. Business metrics will likely be
below BI's BBB medians for at least the next eight quarters, continuing a weak pattern that started in 2016,
despite expectations for improvement. (08/20/19)
Bloomberg ® 10/05/2019 16:33:55
2019 Ebitda, Margin Goals Drop Dramatically
Credit Drivers-Financial
Low Risk, But Serious Damage If GE Can't Close Danaher Deal
The successful close of its pending asset sale to Danaher, expected to yield $20 billion of net proceeds, is
essential to GE's deleveraging plan. Yet even with this action, GE's leverage and financial policies will be outliers
to peers, giving raters fuel for negative activity. Danaher's euro bond road show will start the week of Aug. 26,
Bloomberg News reported. (08/21/19)
5. Liability Management Appears Achievable
Announced asset sales can provide General Electric most, if not all, of the capital needed to reduce net leverage
to its target and to move closer to raters' expectations. Yet it's just as important to achieve the difficult goal of
improving profitability toward expectations as well as not running into unforeseen legal challenges or more issues
in its finance unit.
When the GE Biopharma deal closes that will lead to a net debt reduction of about $20 billion. In the scenarios of
a cut of more than $30 billion, we include a sale of GE's stake in Baker Hughes. (08/21/19)
2020 Scenario Analysis
6. GE's Leverage and Goal Are Weak vs. Peers
Bloomberg ® 10/05/2019 16:33:55
GE's net adjusted leverage could fall about 1.3x toward 4x on a pro forma basis, if the company uses the $20
billion of net proceeds from the pending sale of its biopharma unit to Danaher for net debt reduction. Nonetheless,
leverage will remain elevated to the BBB rated tier group. We question raters' comfort with GE's net debt target of
2.5x leverage at their high BBB rankings, as that goal is elevated vs. peers, which don't carry the legal,
contingency and other financial risks that come within the GE bond complex.
We are uncomfortable with GE’s 2.5x net leverage target. Cash balances should be taken in the context of the
liability structure, which includes more than $20 billion of progress collections, guarantees on GE Capital’s debt
and a litany of contingencies and legal matters. (08/21/19)
Adjusted Net Leverage: BBB Industrials
7. Progress Collections Are $20 Billion Consideration
One reason GE is struggling to generate free cash is the dynamics of power-plant construction and corresponding
accounting, in our view. Progress collections and deferred income of $21 billion exceed cash on the
manufacturing balance sheet. With the power markets in decline, GE is likely using cash to support current
projects at a faster rate than it's gaining new awards and advance payments, curtailing cash-flow generation.
It’s also possible that some projects were bid aggressively, which may be affecting profitability. GE's
acknowledgement that the power unit will use more free cash than the $2.7 billion in 2018 underscores the
significance of the challenge, particularly when cash balances at the manufacturing unit are below billings.
(08/21/19)
GE's Free Cash Falls as Billings in Excess Stall
Bloomberg ® 10/05/2019 16:33:55
Liquidity Outlook & Analysis
8. Liquidity Bridge Over Troubled Water as GE's Cash Homeward Bound
General Electric will likely hold cash proceeds from upcoming asset sales to help address about $26 billion of debt
maturities through 2021. GE has said it will likely need to tap the capital markets in 2021. That could be the first of
several times GE comes back for additional capital because it has another $17 billion of debt maturities in 2022-
23 and will be closer to the end of its asset-divestiture program, in our view. (08/20/19)
Click for Debt, Loan-Maturity Schedule
Valuation
Catching a Falling Knife? Why We Think Not on Some GE Bonds
General Electric's liquidity tools, such as its pending biopharma sale to Danaher, and optionality for other liquidity
events indicate enough flexibility even if new cash requirements occur, in our view. GE's credit curve has repriced
in the past month. Short-dated issues are notable for spread and tender potential, and have some protection if
rating activity occurs. (08/27/19)
9. Default Probability Swells to 11% Over Five Years
The implied probability of default for General Electric is very steep between the seven- and five-year data points,
in our view, as that's well-past the company's peak debt maturity wall in 2020-23. Bondholders appear to view
less risk than credit-default swaps imply, otherwise the company's 3.375% bonds due in 2024 would trade about 7
cents on the dollar lower, using a weighted average. CDS on GE have almost doubled in the past month, though
are still about 60 bps tighter year-to-date.
Our methodology takes into account implied probabilities of a GE default based on five-year CDS, a 40% recovery
rate, and current pricing of the 3.375% bonds. (08/27/19)
Bloomberg ® 10/05/2019 16:33:55
Default Probabilities
10. Bonds Reprice, Some Wide of Peers
General Electric's bonds could trade about 50 bps wider than BBB rated industrial peers such as Johnson
Controls (JCI) and CNH Industrial, we believe, given the company's array of operating and financial issues. Yet a
few of its bonds trade wider than that. Notably, GE's 5.55% notes due in 2026 are 100 bps wider than JCI's 3.9%
notes due in 2026, and GE's bonds due in 2024 are 60-70 bps wider than JCI's 3.625% notes due 2024. We view
the front-end of GE's curve as more defensive, given the possibility of a debt tender following the completion of its
asset sale to Danaher, and minimization of potential downgrade risk should a ratings event occur. (08/27/19)
BBB Industrial Peer Comparison
11. GE Bonds Fit Within Weaker BBB Peer Group

Contributing Analysts Hoai Ngo (Credit)
General Electric's bonds trade near issues of BBB tier peers that have some exposure to being moved into high
yield, such as Kraft Heinz, Mylan and Ford. GE has among the highest ratings of the group and has plenty of
flexibility from the rankers to achieve their targets, whereas actions of Kraft Heinz and Ford have pushed them to
the edge of "fallen angel" status at one of the raters. Ford's credit curve starts to widen meaningfully to GE's past
four years, more so than credit default swaps would imply.
BI senior analyst Hoai Ngo believes that Campbell's asset-sale program should be sufficient to maintain
investment grade rankings. (08/27/19)
Bloomberg ® 10/05/2019 16:33:55
Shaky BBBs
Key Topics
GE's Gift That Can Keep Giving
Siemens’ Path Can Unlock Cash War Chest for General Electric
General Electric could unlock more than $11 billion of cash if it follows a similar plan as Siemens, by separating a
15% stake in its Healthcare unit and leveraging it to BBB tier peers. That could provide a significant liquidity buffer
should unforeseen events occur in its finance unit. (05/31/19)
12. Here’s How GE Can Pull More Funds From Healthcare
Should General Electric sell a 15% stake in its Healthcare unit, compared with Siemens' 15% spinoff of Siemens
Healthineers, we think the company could generate more than $11 billion in net debt reduction at the parent level.
Our analysis incorporates peer-like growth in 2019 for the unit, BI's estimate of Ebitda, a 30% discount to the
peer-level multiple, and a target of $6 billion of underfunded pensions transferred to the health-care risk profile.
Such a move could enhance GE's liquidity, while maintaining operating and strategic control.
We aren't anticipating GE acting on a plan to sell down its Healthcare stake in the near term. Rather, we highlight
the company’s optionality should it require additional financial flexibility, or create a potentially higher-multiple
equity currency for acquisitions. (05/31/19)
Click for Chart and Data Transparency
Bloomberg ® 10/05/2019 16:33:55
13. Leverage Healthcare to Mid-3x Range for Dividend
Following the $21.6 billion sale of its biopharma business to Danaher, we think GE Healthcare could be leveraged
in the 3-3.5x range and achieve BBB tier investment grade credit ratings, while providing a sizable dividend for the
parent. Our analysis takes into consideration BI's credit medians and raters' targets for BBB tier medical
technology companies such as Becton Dickinson, Thermo Fisher, Zimmer Biomet and Abbott Laboratories. That
leverage is above Siemens Healthineers' targeted net goal of 1.5x but could be a sufficient starting point for the
unit, especially given the operation's cash-generation abilities. (05/31/19)
Leverage of GE Healthcare Peers
14. Full Split Shouldn't Be on Agenda
General Electric and its Healthcare unit have relied on each other for technology, marketing and financing, which
may affect the profitability of both companies after the spinoff if there's a failure to maintain a commercial
relationship. GE has financed purchases of large health-care equipment, and the Healthcare unit has used GE's
Predix to build an industry-specific cloud for data management and analysis. Also, Healthcare was a door opener
for the power unit in emerging markets, according to the unit's former CEO and former chairman of GE, John
Flannery. Should Flannery's 2016 view that Healthcare would grow slower outside of GE come true, that may limit
the unit's ability to more rapidly improve profitability toward peer levels. (05/31/19)
Click for Transparency on Quotes, Analysis
Behind Closed Doors
Behind Closed Doors: Our Credit Meeting With General Electric
Credit views of General Electric remain tilted toward the glass being half-full following our meeting with the
Bloomberg ® 10/05/2019 16:33:55
company's investor relations team. The company appears to have better vision of its business risks and how to
control them, while we unearthed insights on financial policy, power profitability and change in the CFO role.
(08/26/19)
15. Financial Policy Not Etched in Stone
General Electric may revise its leverage target (presently 2.5x net debt) down upon achieving it, in our view.
Chairman and CEO Larry Culp ran Danaher with about 1.3x gross leverage, on average, during his tenure as
CEO of that organization, with increases in leverage a function of deal activity. Taking into consideration GE's
array of on- and off-balance-sheet risk items that Danaher didn't have, it's possible that Culp might want a
leverage range below that used in his prior role. During his tenure, Danaher was consistently rated in the A
category, something that GE strives for longer-term.
We've written that GE will need to reduce net debt by $25-$30 billion to achieve its leverage goal. The company’s
investor relations group didn't push back on our view. (08/26/19)
Danaher Leverage Trends Under Culp
16. Power’s Self-Help Story Is Game of Less-Worse
By focusing on shrinking manufacturing, warehouses and corporate expenses, as well as adding visibility at the
field level into service-contract and equipment profitability, General Electric has the potential to generate less-poor
results out of its power unit. Yet balancing its manufacturing footprint and seeking better-margined projects within
a weak demand environment will remain a challenge that will likely constrain what we view as an essential driver
to restoring business metrics toward its peer group. GE doesn't anticipate the unit moving to cash-flow-positive
until 2021.
GE’s renewables unit has the potential to show improved performance as legacy Alstom contracts near
completion over the next year, and as R&D investments are tempered. (08/26/19)
Bloomberg ® 10/05/2019 16:33:55
Organic Declines at Power
17. Bringing the Band Back Together? CFO Hunt Continues
General Electric's next chief financial officer will likely have a strong working relationship with Chairman Larry
Culp, and will have been a leader within an industrial business in the past, based on our conversations with
investor relations. Dan Comas was Danaher's former CFO under Culp and played a central role in deal activity,
which would help GE with Culp's desire to eventually "play offense" once its balance-sheet risks are contained.
We think bondholders would react favorably to Comas as an option, given Danaher's consistent financial results,
lack of one-time charges and M&A history.
Martina Hund-Mejean, former CFO of Mastercard, might be another candidate, given her role in helping Tyco's
turnaround. She was Tyco’s treasurer in 2003-07. (08/26/19)
Dan Comas' Bio
Ratings Deep Dive
Ratings at Risk? Here's How General Electric Can Limit Cuts
If General Electric executes its plans as management has described, it should be able to muddle along within the
BBB rating category. Our estimate of leverage calculations by raters, combined with their leniency in leverage and
cash-flow expectations, provide some near-term comfort. (08/22/19)
18. Moody's Targets More Challenging
General Electric may need to pare down about $5 billion of debt and use the $20 billion of cash from its pending
Bloomberg ® 10/05/2019 16:33:55
asset sale to Danaher for net debt reduction to fit within Moody's parameters in 2020 of less than 3x net leverage.
However, it's less clear that GE can achieve the rater's goal of retained cash flow (after dividends and capital
spending) of at least 20%. That may require the company to generate over $6 billion of free cash flow, compared
with market expectations of a loss of $2.9 billion in 2020. (08/22/19)
Estimated Moody's Calculations
19. S&P's Light Goals Achievable
S&P's very generous leverage and cash-flow targets for General Electric should be met, if not exceeded, if the
company uses proceeds from the pending asset sale to Danaher to pay down net debt, based on our
calculations. The rater's goal of $36 billion of asset proceeds from the sales of stakes in Wabtec, Baker Hughes
and the biopharma unit look optimistic. That's notably because of Baker Hughes' stock drop of more than 30% in
the past year, which may lead GE to not sell down its remaining stake and deconsolidate the asset.
S&P's leverage goal of 4x for GE's remaining health care compares with BI's BBB median of 2.7x on a gross
basis. (08/22/19)
Estimated Rater Calculations
20. Ratings Contingent on Asset Sales, Lazy Metrics
General Electric benefits from rater expectations that are well-below BI's BBB medians and industrial peers, which
isn't comforting when discussing credit quality. But if the company gets close to its asset-sale goals and derisking
plans, it appears that only limited ratings risks exist. GE bondholders will need rating providers to continue to be
Bloomberg ® 10/05/2019 16:33:55
exceptionally tolerant, as we think it could take another eight quarters before the company is in position to fully
achieve rater metrics. That's if further setbacks don't occur and the company can improve operating performance.
(08/22/19)
Excel-Based Credit Rater Scorecard
Other Risk Considerations
GE: Here's The Risks That Keeps Us (Not Hedge Funds) Up at Night
While we believe whistle-blower Harry Markopolos' report that GE is understating liabilities may be selling short its
flexibility and progress in addressing on- and off-balance-sheet items, there are some concerns that keep us up
at night. Insurance and pension liabilities, Max 737 volumes, legal settlements, and guarantees and credit support
to a litany of customers and businesses are all part of a risk profile that should be monitored. (08/19/19)
21. Lower Rates Are an Issue for Bondholders
GE's credit quality is poised to be hurt by the decline in interest rates, as raters evaluate pension and insurance
liabilities. The company may need to revise down its pension discount rate from 4.34% should the 85-bp decline
in yield on the Moody's AA bond index hold. GE noted in its 10-K that a 25-bp discount-rate increase would
decrease the pension benefit obligation at year-end by about $2 billion, and we believe the opposite is a
reasonable framework for a drop in rates.
GE also noted in its annual report that a 25-bp discount-rate decline equates to a $1 billion increase in future
policy reserves for its long-term care insurance. Other factors for both liabilities may impact the net results. GE is
reviewing its insurance liabilities, while pension assumptions will be analyzed at year end. (08/19/19)
Bloomberg ® 10/05/2019 16:33:55
Yield on Moody's AA Index Has Been Dropping
22. Flexibility, Asset Quality Weaker From Baker Hughes
Reducing its stake in Baker Hughes would force GE to deconsolidate the asset, which would force the recognition
of a loss we believe would be in excess of $8 billion. More importantly for bondholders than a potential non-cash
charge is that Baker Hughes' lower earnings, cash-flow outlook, and stock price drop of more than 30% in during
the past year, reduces the flexibility General Electric's 50.4% position provides the company. The drop in cash-
flow expectations affects some raters' adjusted metrics for GE, as they account for Baker Hughes' cash, debt and
cash flow. Given the drop in valuation and cash flow, when and how much of its stake in Baker Hughes GE will
part with becomes more of a question, in our view. (08/19/19)
Expectations for Baker Hughes Drop
23. Large Range of Contingencies, Legal and Lawsuits
General Electric has a multitude of legal items and contingencies that can pull liquidity and temper the pace of
deleveraging, which is a possible reason GE plans to operate with higher cash balances. Direct third-party
guarantee commitments increased sequentially. SEC investigations and shareholder lawsuits have not been
accrued for given the challenge of determining a reasonable value, but are potential exposures. Environmental
and asbestos items that totaled another $1.7 billion as of Dec. 31. There's potential for some derivative contracts
to be terminated should the company fall below the mid-BBB level.
GE did pay a $1.5 billion civil penalty in 1Q to settle a Department of Justice investigation of WMC . (08/19/19)
Bloomberg ® 10/05/2019 16:33:55
CP, Liquidity, Legal Monitor
24. Open Items Are a GE Liquidity Risk
Items that aren't included in traditional debt calculations but constitute potential capital calls for GE are
substantial, making them a credit-risk consideration. GE Capital's $38 billion of long-term care contracts,
structured settlements, life insurance and other contracts has been a major drag on earnings and the finance
company's equity base. As such, GE plans to contribute $9 billion to GE Capital through 2024, including $4 billion
this year, to strengthen its equity. Raters don't include $36 billion of implicit or explicit guarantees of GE capital
debt. There are potential sources as well, most notably the company's plan to generate $10 billion from asset
sales over the next two years from the finance unit. (08/19/19)
CP, Liquidity, Legal Monitor
25. GE Reduces Short-Term Debt Usage
GE continues to reduce its reliance on commercial paper, which we view as favorable due to its lower credit
ratings, as this tempers the risk of a capital markets freeze on its credit outlook. Yet the increase in usage of its
revolving credit facility is a consideration given its short tenor. GE would likely loose access to the CP market
should its ratings fall under A-2/P-2/F2, which would equate to BBB-/Baa3/BBB-, or about two notches below its
current credit quality. S&P has assigned its A-2 commercial paper rating to autos and industrials, such as Ford,
Fluor and Renault, which all have BBB rankings and negative outlooks.
GE has a $20 billion backup revolving credit facility that expires in 2021, a $14.8 billion revolver that matures in
2020 and 364-day, $3.1 billion, bilateral credit facilities. (08/19/19)
Bloomberg ® 10/05/2019 16:33:55
Download: Commercial Paper Monitor for GE
26. Grounded Max Weighs on GE’s Cash Flow
General Electric's free cash flow has a $600 million headwind from slower production of Boeing's 737 Max
program, which will accelerate to $400 million per quarter in 2H, slowing its ability to reduce net debt. We remain
concerned that further delays in getting the aircraft back into action will increasingly weigh on GE's cash
generation. GE didn't factor the Max grounding into its full-year outlook, but did narrow its free cash flow guidance
to minus $1 billion to $1 billion for 2019. Fitch suggested the company's cash-flow burn in 2019 will be $1-$2
billion, about $1 billion worse than the favorable end of the company's public guidance, suggesting some room for
additional weakness relative to its negative outlook. (08/19/19)
Bloomberg Transcript
"As previously discussed, the MAX was originally outside the scope of
our planning and year-to-date it impacted ourcash flow by about $600
million or $300 million per quarter. However, for the first half improved
performance ofPower, as well as better aftermarket sales, services
billings and timing of discount payments more than outweighed thecash
flow pressure at Aviation. In the second half if the plane remains
grounded, we anticipate a negative impact ofroughly $400 million per
quarter."
Jamie S. Miller - SVP & CFO, General Electric
DOCC /ID DN000000002678868771, July 31, 2019
Quote located on page 4, click to view entire transcript
To contact the analyst for this research:

Joel Levington at jlevington1@bloomberg.net
Bloomberg ® 10/05/2019 16:33:55

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General Electric Credit Research

1. Love Me Tender! GE's Steps in Great Deleveraging: Credit React

(Bloomberg Intelligence) -- THESIS: GE is in Table of Contents

2. Progress on Great Deleveraging at GE, But Road Ahead Is Bumpy

Click for Interactive Excel Sheet

Source: Bloomberg Intelligence

Credit Drivers - Profits

Breaking Bad Can Be GE’s $12 Billion Elixir, Healing Bondholders

3. Business Metrics Don’t Stand Up vs. BBB Peers

GE's Ebitda Margins, FCF/Sales Short of BBB Peers

Source: Bloomberg Intelligence

4. GE Culpable of Subpar Metrics for Rankings

2019 Ebitda, Margin Goals Drop Dramatically

Source: Bloomberg Intelligence

Low Risk, But Serious Damage If GE Can't Close Danaher Deal

5. Liability Management Appears Achievable

2020 Scenario Analysis

Source: Bloomberg Intelligence

6. GE's Leverage and Goal Are Weak vs. Peers

Adjusted Net Leverage: BBB Industrials

Source: Bloomberg Intelligence

7. Progress Collections Are $20 Billion Consideration

GE's Free Cash Falls as Billings in Excess Stall

Source: Bloomberg Intelligence

Liquidity Outlook & Analysis

8. Liquidity Bridge Over Troubled Water as GE's Cash Homeward Bound

Click for Debt, Loan-Maturity Schedule

Source: Bloomberg Intelligence

Catching a Falling Knife? Why We Think Not on Some GE Bonds

9. Default Probability Swells to 11% Over Five Years

Source: Bloomberg Intelligence

10. Bonds Reprice, Some Wide of Peers

BBB Industrial Peer Comparison

Source: Bloomberg Intelligence

11. GE Bonds Fit Within Weaker BBB Peer Group

Source: Bloomberg Intelligence

GE's Gift That Can Keep Giving

12. Here’s How GE Can Pull More Funds From Healthcare

Click for Chart and Data Transparency

Source: Bloomberg Intelligence

13. Leverage Healthcare to Mid-3x Range for Dividend

Leverage of GE Healthcare Peers

Source: Bloomberg Intelligence

14. Full Split Shouldn't Be on Agenda

Click for Transparency on Quotes, Analysis

Behind Closed Doors

Behind Closed Doors: Our Credit Meeting With General Electric

15. Financial Policy Not Etched in Stone

Danaher Leverage Trends Under Culp

Source: Bloomberg Intelligence

16. Power’s Self-Help Story Is Game of Less-Worse

Organic Declines at Power

Source: Bloomberg Intelligence

17. Bringing the Band Back Together? CFO Hunt Continues

Dan Comas' Bio

Source: Bloomberg Intelligence

Ratings Deep Dive

Ratings at Risk? Here's How General Electric Can Limit Cuts

18. Moody's Targets More Challenging

Estimated Moody's Calculations

Source: Bloomberg Intelligence

19. S&P's Light Goals Achievable

Estimated Rater Calculations