S&P: No U.S. Credit Rating Downgrade Despite Supercommittee Fail

WASHINGTON -- Credit rating agency Standard & Poor's says it will not downgrade the U.S. government's credit rating because a Congressional committee failed to come up with a plan to trim deficits by at least $1.2 trillion over the next decade.

S&P in August cut its rating of long-term U.S. Treasury securities by one notch from AAA to AA+, the first such downgrade of U.S. government debt in history.

In a brief statement Monday, S&P said it did not plan a further downgrade of the rating based on the supercommittee's failure to agree on a plan. But S&P warned that its present rating is based on the expectation that automatic cuts will take effect in January 2013. Some Republicans are vowing to block the defense spending cuts.

Comments

[sergal stew]

01:19 PM on 11/22/2011

Of course it's safe the first downgrade was a response to republicans gone wild not about our fiscal position.

[UncleDale]

10:14 AM on 11/22/2011

We have a credit rating while being fifteen Trillion Dollar$ in debt?

[tck29]

09:51 AM on 11/22/2011

Ratings are only issued after the compensation has been agreed upon.

There is zero credibility to the process.

[SPITR]

09:38 AM on 11/22/2011

Well, we know someone got to the credit rating agencies now. Do they believe we are this stupid??

[US Patent 7089319]

09:29 AM on 11/22/2011

Of course it will. Now that the Dept of Justice jumped on S&P's throat, they only agency that would acknowledge the truth is Dagong Global Credit Rating Co in China.

Can I hear it for the "land of the free"?

[omnioasis]

09:25 AM on 11/22/2011

So it comes out today that democrats added 480 billion to the debt since August 2nd, with debt forcasted for 20 trillion by dec 2012. Not bad thats almost 12 trillion in 4 years.

[VoteEarlyVoteOften]

09:14 AM on 11/22/2011

However, in other news, Fitch announced that it is reviewing US credit rating.

[Papa Swamp]

09:09 AM on 11/22/2011

Absolutely hilarious!
Q3 Debt growth $447 Billion…Q3 GDP growth $168 Billion. Thus it takes over $2.50 of debt to generate $1 of 'growth'. By the time 2013 rolls around and the $1.2 Trillion in cuts begin (over 10 yrs) the US will have accumulated $1.7 Trillion in new debt. The cost to service the debt at present levels over 10 yrs will equate to $4.4 Trillion. The whole ratings thing by the big 3 is a total sham. They could have done us a favor and downgraded the US. That might have forced the morons in congress to get a grip…but I doubt it.