Bloomberg News

S&P Reiterates Warning of 50% Change of U.S. Downgrade

July 21, 2011

(Adds prior comments from S&P in the second paragraph.)

July 21 (Bloomberg) -- Standard & Poor’s reiterated that there is a 50 percent change that it will lower the U.S. credit rating within three months as lawmakers struggle to reach agreement over raising the nation’s debt ceiling and deficit reduction.

S&P said on July 14 there was a one-in-two possibility that it would cut the U.S. AAA by one or more levels if the government hasn’t agreed on a “credible solution” on the nation’s debt level. The company reiterated the warning in a report today outlining three hypothetical scenarios.

--Editor: Greg Storey

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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