Sunday, July 24, 2011

Standard and Poors says 50-50 chance it will Lower U.S. Credit Rating

 http://www.bloomberg.com/news/2011-07-22/obama-says-republicans-walking-away-from-fair-deal-in-debt-ceiling-talks.html
begin quote from above article.

Standard & Poor’s

Standard & Poor’s warned there is a 50 percent chance it will lower the U.S. government’s AAA credit rating by one or more levels within three months. S&P said yesterday that, even if Congress raises the debt limit in time to avert a default, it might lower the U.S. sovereign rating to AA+ with a negative outlook if it isn’t accompanied by a “credible solution” on the debt level.
Such a ratings change, which could come as soon as early August, would “modestly raise” the federal government’s borrowing costs, S&P said. If the U.S. defaults on some obligations after Aug. 2, even if it pays bondholders, S&P forecasts short-term interest rates would rise by 0.50 percentage points and long-term interest rates by 1 percentage point.end quote.

So even though Egan-Jones has already lowered U.S. credit rating to AA+ from AAA there is a 50% chance (which is pretty high) that Standard and Poor's which is the biggest credit rating company in the U.S. will also drop the U.S credit Rating from AAA to AA+ 
note: you can read in the following blog and quotes about Egan Jones dropping the credit rating already:
Egan-Jones Ratings downgrades U.S. Credit Rating t...

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