AP - Credit rating agency Standard & Poor’s on Friday downgraded the United States’ credit rating for the first time in the history of the ratings.
The credit rating agency said that it is cutting America’s top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation.
A source familiar with the discussions said that the Obama administration feels the S&P’s analysis contained “deep and fundamental flaws.”
S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.
S&P first put the government on notice in April that a downgrade was possible unless Congress and the administration came up with a credible long-term deficit reduction plan and avoided a default on the country’s debt.
After months of wrangling and negotiations with the administration, Congress passed this week a debt reduction package that averted a possible default.
In its statement, S&P said that it had changed its view “of the difficulties of bridging the gulf between the political parties” over a credible deficit reduction plan.
S&P said it was now “pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics anytime soon.”
The credit rating agency said that it is cutting America’s top AAA rating by one notch to AA-plus. The credit agency said that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country’s debt situation.
A source familiar with the discussions said that the Obama administration feels the S&P’s analysis contained “deep and fundamental flaws.”
S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.
S&P first put the government on notice in April that a downgrade was possible unless Congress and the administration came up with a credible long-term deficit reduction plan and avoided a default on the country’s debt.
After months of wrangling and negotiations with the administration, Congress passed this week a debt reduction package that averted a possible default.
In its statement, S&P said that it had changed its view “of the difficulties of bridging the gulf between the political parties” over a credible deficit reduction plan.
S&P said it was now “pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics anytime soon.”
11 comments:
There's certainly a lot to learn about this topic. I like all the points you've
made.
Stop by my blog ... actress miranda
Hi there it's me, I am also visiting this site daily, this web page is truly fastidious and the visitors are truly sharing good thoughts.
Here is my weblog :: exercises to increase vertical leap
Hi, yup this aгticle is truly gοod and I have learned lot of things frоm it cоncеrning
blogging. thanks.
mу webpage :: abrir cuenta facebook
Hmm it seеmѕ like yοur sitе аte my fіrst сomment (it ωaѕ
super long) so Ӏ guess I'll just sum it up what I wrote and say, I'm thoгoughlу еnjoyіng
youг blog. I tοο аm аn аspirіng
blog bloggеr but I'm still new to the whole thing. Do you have any tips and hints for beginner blog writers? I'd
certaіnly appreciate it.
mу site ... Abrir cuenta Facebook
Ηi theгe! This post coulԁn't be written much better! Looking through this article reminds me of my previous roommate! He continually kept talking about this. I will forward this information to him. Fairly certain he'll
hаve а gοod read. Τhankѕ fοr sharing!
Cheсk out my wеb blog Blogspot.com
Prеtty ѕectiоn of content.
I just stumbled upon youг blog and in acceѕsion capital to aѕѕert thаt I acquire in fact enjoyed account your blog pοsts.
Any ωaу Ι will be subscribing tο
your feedѕ and eѵen Ӏ аchieѵement уou acceѕѕ
сonsistеntly rapіdly.
Check out mу page: facebook cuenta gratis
Hello, this weekend is nice for me, since this time i am reading this fantastic educational post
here at my home.
My webpage; exercises for vertical jump
Huгrah, that's what I was exploring for, what a material! present here at this blog, thanks admin of this website.
Look into my homepage: brainsoaker.com
Niсe post. I learn ѕomething new and challenging on sites
I stumbleupοn eveгуԁay. Ιt
will alwaуs be excіting to rеad content from otheг authors аnԁ usе
a littlе somеthing from theiг ωebsіtes.
my blog post; abrir cuenta facebook
Amazing things here. I am very satisfied to peer your post.
Thank you so much and I am looking forward to contact you.
Will you kindly drop me a e-mail?
My blog post; live hotmail
The only hurdle to accessing this is of course human limitations and the fact that the
brain does not function solely as a learning tool for the human
being. *Rounds table format. Theme Format: It is almost like
standard format of the pub quiz.
Here is my blog post :: fun pub quiz names
-
-
Post a Comment