STANDARD & POOR’S DOWNGRADES U.S. CREDIT RATING FOR FIRST TIME IN HISTORY-
Congratulations to President Obama for becoming the first U.S. President to have the countries credit rating downgraded...
FOUR MORE YEARS!!!!
Sadly, the fears have been confirmed. Standard & Poor‘s has downgraded the United States’ credit rating for the first time in the history of the ratings.
According to AP, the credit rating agency says that it is cutting the country’s top AAA rating by one notch to AA+. On Friday evening S&P said that the debt bill recently passed by Congress was not enough to stabilize the nation’s debt crisis.
AP also reports that a source familiar with the situation said that the Obama administration believes S&P’s analysis contained “deep and fundamental flaws.”
And it gets worse. The Wall Street Journal published the following press release from S&P that claims the rating agency could be downgrading the U.S. yet again to a AA. In addition, the S&P statement says the downgrade reflects “our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 201:”
– We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating.
– We have also removed both the short- and long-term ratings from CreditWatch negative.
– The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.
– More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.
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