What is commercial paper and why is it important to GE?
Commercial paper is a debt instrument companies use to raise short-term cash to fund their business operations. It’s essentially a promissory note that is sold by the issuing company to institutional investors, either directly or through dealers, as a form of borrowing. Commercial paper can be issued for terms as short as one day or as long as 270 days – and then must be repaid by the issuer. Commercial paper is generally offered by large stable companies with high credit ratings. The commercial paper of GE and its affiliates has the highest ratings of A-1+/P-1 from Moody’s and S&P. Read more questions and answers on GE’s commercial paper funding facility.
