The United States debt Obligation and credit ratings

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S&P Downgrades US AAA Credit Ratings to AA+; Moody’s & Fitch Affirms their AAA Rating
Standard & Poor’s credit rating agency downgraded its rating of U.S. credit for the first time in the country’s history. The agency lowered ratings for government debt that matures in more than a year to AA+ from AAA with a negative outlook.

The downgrade was hinged on the alleged weakness of American policymaking and political institutions and does not apply to the short-term U.S. securities (treasury bills). Other rating agencies, Moody’s Investors Service and Fitch Ratings, confirmed their AAA credit ratings for the United States following the raising of the statutory debt limit. The agencies had earlier placed the U.S ratings on review for a possible downgrade due to the rising probability of a default on the government’s debt obligation. The signing into law of the plan to lift the nation’s borrowing limit and cut spending, following months of wrangling between Democratic leaders and Republican lawmakers, reversed the previous outlook.

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