Threat of Downgrade Looms

[babylonsister]

http://politicalwire.com/archives/2011/07/25/threat_of_downgrade_looms.html

July 25, 2011

Threat of Downgrade Looms


The Wall Street Journal reports Moody's, Standard & Poor's and Fitch Ratings have all warned they might cut the U.S. credit rating if a deal to raise the nation's debt limit is not reached.

However, S&P now says it could move "even if a debt-reduction deal is met and the $14.29 trillion federal debt ceiling is raised. S&P has cited $4 trillion in debt reduction as a figure that would be appropriate for keeping the triple-A rating. S&P has also said it wants a credible agreement, meaning one that has bipartisan support."