By Ria Novosti
Top finance officials from the Group of Seven (G-7) of world’s most industrialized countries pledged on Monday to secure stability on international markets in the wake of debt problems in the United States and Europe, Japan’s Kyodo news agency reported.
“We are committed to taking coordinated action where needed, to ensuring liquidity, and to supporting financial market functioning, financial stability and economic growth,” G-7 finance ministers said in a joint statement following their on-line conference.
Ratings agency Standard & Poor’s downgraded on Friday the United States’ top-notch AAA credit score by one notch to AA-plus for the first time ever, citing concerns about the country’s record budget deficits and rising debt burden. In addition to the downgrade, S&P issued a “negative” outlook for the United States, meaning that further downgrade may follow within the next two years.
S&P said last-minute legislation passed in Congress earlier this week to raise the U.S. debt ceiling and avert a financial default “fell short” of easing the nation’s crippling deficit.