Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (99017)	8/5/2011 8:46:53 PM
From: manalagi	Read Replies (2) \| Respond to of 149317

S&P Downgrades US Credit Rating to AA-Plus Published: Friday, 5 Aug 2011 \| 8:35 PM By: CNBC with wires The United States lost its top-notch triple-A credit rating from Standard & Poor's Friday, in a dramatic reversal of fortune for the world's largest economy. S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits. U.S. Treasurys, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada. The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months. This came after a confusing day of reports: Standard & Poor's told the U.S. government Friday afternoon that it was preparing to downgrade the U.S.'s triple-A credit rating but U.S. officials notified the S&P that they had made a mathematical error that was off by "trillions," an administration source told CNBC. Allegedly the error was in the calculation of the U.S. debt-to-GDP ratio over time and was based on a misreading of what the correct congressional baseline was. Throughout Friday, markets were rife with speculation that S&P, which has had a negative outlook on the U.S. since April 18, would downgrade the country’s credit from its current triple-A level and that it could come as early as Friday night. On July 14, S&P put the government on a credit watch with negative implications, meaning there was at least a one in two chance the U.S.’s long-term debt would be downgraded within 90 days. An S&P spokesman declined to comment on any possible plans for a downgrade or statement later Friday. On Tuesday, both Fitch and Moody's backed their triple-A rating on the U.S.—but with caveats. Fitch warned that the U.S. rating " will remain under pressure for some time," while Moody's [MCO 32.88 -0.68 (-2.03%) ] went so far as to slap the U.S. with a negative outlook. — John Harwood and Kate Kelly contributed to this report. http://www.cnbc.com/id/44039103