Why the U.S. won’t lose its "AAA" rating…yet

Why the U.S. won’t lose its "AAA" rating…yet

The stalled progress in the Washington budget battle may be rattling markets but the gridlock among policymakers will not move the rating agencies to downgrade the United States – yet.

The U.S. credit rating is far from safe. All three major agencies have negative outlooks on the United States, which suffered its first downgrade in history last year when Standard & Poor’s stripped it of its triple-A rating.

But the fiscal cliff is only one event in a series of issues that will see ratings agencies looming over Washington for months.

Investors sold off riskier assets such as stocks on Friday and scooped up safe-havens such as the dollar and U.S. Treasuries after Republican Representative John Boehner failed to find enough support from his own party to push a measure raising taxes on millionaires through the House of Representatives.

 

Continue Reading

 


Commenting Policy

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

You may use HTML in your comments. Feel free to review the full list of allowed HTML here.

Facebook Comments

Disqus Comments