Standard & Poor’s Puts ‘Negative’ Outlook on U.S. AAA Rating

[n2doc]

By Robert Burgess - Apr 18, 2011 9:36 AM ET


Standard & Poor’s put a “negative” outlook on the U.S. AAA credit rating, citing rising budget deficits and debt.

“We believe there is a material risk that U.S. policy makers might not reach an agreement on how to address medium-and long-term budgetary challenges by 2013,” New York-based S&P said in a report today. “If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’ sovereigns.”

Under President Barack Obama’s fiscal year 2012 budget, released in February, the total debt subject to the ceiling would be $20.8 trillion in 2016. The plan House Republicans approved April 15, written by Budget Committee ChairmanPaul Ryan, would need a debt ceiling of at least $19.5 trillion, according to data compiled by Bloomberg Government.

Treasuries fell, reversing earlier gains, after S&P lowered its outlook to negative from stable. The benchmark 10-year note yielded as much as 3.45 percent in New York before trading little changed at 3.43 percent. The dollar dropped 0.7 percent to 82.58 yen and pared its gain versus the euro. The S&P 500 Index fell 1.5 percent.


http://www.bloomberg.com/news/2011-04-18/standard-poor-s-puts-negative-outlook-on-u-s-aaa-rating.html

[indepat]

1. Just S&Ps contribution to the pubs' drive gut social security and Medicare. Pubs will hang this

albatross around Obama's neck, but he is not complicit except to the extent he has not ended junior's wars ASAP, ended profligate MIC spending, continued junior's irresponsible fiscal policies, not ended corporate tax havens, and continued junior's tax cuts, especially for the uber-wealthy, made so much more wealthy by governmental largess (welfare). :patriot:

Edited to fix emoticon

[abelenkpe]

2. Same S&P that rated Mortgage Backed Securites

a great deal?