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S&P Unlikely To Further Downgrade US Long-Term Credit Rating

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The chances are 1 to 3 that rating agency Standard & Poor’s will further downgrade the U.S. long-term sovereign credit rating following the agency’s historic decision to cut America’s top-tire AAA rating, a S&P official said.

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.

Wall Street
Wall Street

“It was our duty to make such a hard and controversial call”, David Beers, global head of S&P sovereign ratings, said, commenting on the agency’s decision.

Analysts say the U.S. top rating downgrade did not come as a surprise as S&P announced in summer that it expected the U.S. authorities to cut the growing budget deficit by $4 trillion while the U.S. Congress’ debt ceiling deal approved last week includes only $2.1-2.4 trillion in savings.

John Piecuch, an S&P official, said the agency always gave a debt issuer the opportunity to review the announcement before it was made.

Ria Novosti

Ria Novosti

RIA Novosti was Russia's leading news agency in terms of multimedia technologies, website audience reach and quoting by the Russian media.

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