The rating agency puts GE on watch for a possible downgrade, saying the healthcare spinoff could result in “more volatile profitability and cash flow.”
The downgrade to a B2 rating reflects "the significant shortfall in the production rate" of the Model 3 vehicle and liquidity pressures, Moody's says.
S&P estimates the cut in the corporate tax rate will result in an aggregate writedown of about $14 billion of life insurers' deferred tax assets.
The rating agency forecasts "continued weak operating results and gradually deteriorating credit metrics amid a challenging operating environment."
The rating agency is concerned that China is not doing enough to "deleverage" its economy after years of credit-fueled stimulus.
S&P cites the possibility that Toys may address maturing bonds at less than par or engage in a broader restructuring.
Negative rating actions on sovereign debt "are likely to continue to outnumber positive actions over the coming 12 months," S&P says.
Regulators had fined the rating agency $1.4 million for publishing a "misleading" report that flagged Chinese companies for weak corporate governance.
