Over the years, GE has piled on tons of debt caused by poorly-timed deals, a massive pension deficit and misguided share buybacks.
Underscoring the scale of the problem, Moody's said that GE's "very elevated leverage" could lead it to downgrade the company's rating by multiple notches. Ratings downgrades can make it more expensive for companies to borrow money.
The good news is that S&P updated its outlook on GE to "stable" because the firm expects leverage and cash flow will improve in the coming years.
Still, GE's debt problems may force the company to reexamine its $4.2 billion dividend. GE cut the dividend last year for just the second time since the Great Depression.
But GE's finances have deteriorated further. S&P listed the dividend as one of several levers Culp could pull to reduce debt.
In a statement, GE said it has a "sound liquidity position" that includes cash and operating credit lines.
Repeating comments made by Culp on Monday, GE said it remains "committed to strengthening the balance sheet including deleveraging."
Now that he's in charge, Culp will need to decide if he wants to go forward with former CEO John Flannery's plans to break-up GE. Flannery's turnaround plan included exiting various businesses, including oil and gas, health care and the century-old railroad division. Proceeds from the sales would then be used towards paying down debt. But shrinking GE also makes the company more dependent on the rest of its portfolio -- with GE Power being the biggest remaining business. That means slumping power profit gives GE less firepower to pay down debt.