With $150 billion of short-term debt, including $98 billion of commercial paper programs at the end of the second quarter, the market has the right to have concerns about ongoing access to the capital markets and attendant cost of capital, analyst Nigel Coe wrote in a note to clients.

However, this fear largely ignores the historical stability of GE Capital's business model, Coe added.

Credit default swaps (CDS) insuring GE Capital's debt jumped 110 basis points to 500 basis points on Wednesday, according to Markit Intraday, amid continuing concerns over the health of financial companies.

"This market only cares about liquidity and so CDS spreads are a real concern," Coe said.

"For this reason, we would be surprised if GE did not take proactive steps towards de-levering GE Capital balance sheet..., which could be accomplished via a cut in GE Capital dividend repatriated to the parent and/or a commitment to slower/no financial asset growth," he added.

GE has lost about 17 percent of its market value, or $46.7 billion, over the past week, as the bankruptcy of investment bank Lehman Brothers Holdings Inc and a U.S. government bailout of insurer American International Group Inc spooked investors.

GE shares have sold off as investors worried that the trouble at Lehman, AIG and other large financial services firms may be a warning sign about GE Capital.

GE itself faces several challenges, including deteriorating GE Capital asset quality, rising tax rate and dilution from divestitures, over the next 12 months, the analyst said.

Still, GE is one of the "...highest quality companies in the industrial sector with organic growth rates (ex-financial), at the high end of sector averages and margins well in excess of peers," Coe said.

The analyst cut his price target on GE stock to $28 from $33. He maintained his "hold" rating on the stock. Shares of GE closed at $23.39 Wednesday on the New York Stock Exchange.

(Reporting by Tenzin Pema in Bangalore; Editing by Jarshad Kakkrakandy)