S&P Downgrades US Credit Rating

By: Associated Press Email
By: Associated Press Email

WASHINGTON (AP) -- Credit rating agency Standard & Poor's says it has downgraded the United States' credit rating for the first time in the history of the ratings.

The credit rating agency says that it is cutting the country's top AAA rating by one notch to AA+.

The credit agency said late Friday that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.

A source familiar with the discussion said that the Obama administration believes S&P's analysis contained "deep and fundamental flaws."

S&P says in addition to the downgrade, it's issuing a negative outlook, meaning there's a chance it will lower the rating further within the next two years. It says such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the Administration have agreed to make, higher interest rates, or new fiscal pressures during this period.

S&P says it has changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.

(Copyright 2011 by the Associated Press. All rights reserved.)

KKCO firmly believes in freedom of speech for all and we are happy to provide this forum for the community to share opinions and facts. We ask that commenters keep it clean, keep it truthful, stay on topic and be responsible. Comments left here do not necessarily represent the viewpoint of KKCO 11News.

powered by Disqus
KKCO NBC 11 News 2531 Blichmann Avenue Grand Junction, CO 81505 Station Phone: 970.243.1111 Business Fax: 970.243.1770 Newsroom Fax: 970.245.3793 News Tip & Contest Line: 970.255.8477
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 126870553 - nbc11news.com/a?a=126870553
Gray Television, Inc.