|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    17th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Economy News feed Economy News

Debt News feed Debt News

All Financial News feed All Financial News

S&P may downgrade US AAA rating

Bookmark and Share

by Kay Mitchell

Standard & Poor’s (S&P) has warned it may lower the US triple-A debt rating if a deal to lift the Government’s $14.29 trillion borrowing limit is not agreed soon.

The news comes just one day after fellow ratings agency Moody’s said there is a risk of a possible downgrade.

Both warnings come as tense negotiations in Washington enter the fifth day but fail to reach an agreement on the issue.

President Obama needs the Republican lawmakers and Democratic-held Senate to agree to a deal to close the US deficit, while allowing Washington to borrow past the deadline of August 2 to ensure the US can meet its obligations.

S&P said: “Today’s CreditWatch placement signals our view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the US within the next 90 days.”

Meanwhile, Fitch Ratings is maintaining its stable outlook on US debt and said it expects the debt ceiling to be raised by the deadline.

Finally, chairman of the Federal Reserve, Ben Bernanke, has warned that the US defaulting on its debt would cause a “major crisis”.

Discuss this in the Finance Markets forums

Story link: S&P may downgrade US AAA rating

News posted: July 15, 2011

Financial Services:

Related financial stories to: S&P may downgrade US AAA rating:
Previous: «
Next: »

Visited 2500 times, 1 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , ,