Replies to post #6449 on GE Aerospace (GE)

[str8_chuter]

Has nothing to do with earnings.

This is a requirement. When assets become materially impaired below the amount at which they are carried on the books and there is no reasonable expectation that these assets will recover in value anytime soon, then the company must acknowledge the impairment amount as quickly as possible.

$27B is nearly a quarter of GE's market cap. The company is tossing in the kitchen sink here.

This really hurts on the company's leverage ratios. Next earnings report coming up in about three weeks. Shortly afterwards, look for each of the ratings agencies to downgrade GE's credit rating. This is the real problem as GE is a slave to the debt markets.