Bloomberg News

U.S. May Have Its Credit Ratings Cut by S&P in Next Three Months

July 14, 2011

July 14 (Bloomberg) -- The U.S. may have its AAA long-term and A-1+ short-term credit ratings cut by Standard & Poor’s Ratings Services, which said there is an increasing risk of a substantial policy stalemate enduring beyond any near-term agreement to raise the debt ceiling.

S&P put the ratings on Creditwatch negative, meaning there’s a one-in-two chance they may be cut in the next 90 days. The outlook on the AAA rating was revised to negative from stable by S&P on April 18.

The long-term rating may be lowered by one or more notches into the AA category in the next three months if S&P concludes Congress and President Barack Obama’s administration haven’t achieved a credible solution to the rising U.S. government debt burden and aren’t likely to achieve one in the foreseeable future, according to the statement.

Link to Statement:{NSN LOCK983PWT1D <GO>}

To contact the editor responsible for this story: Vivek Shankar at vshankar3@bloomberg.net


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