Copying and distributing are prohibited without permission of the publisher
US ratings downgrade “likely”
04 August 2011
Despite US politicians reaching a deal on the country’s debt ceiling, a sovereign ratings downgrade should be expected, according to senior industry sources, reports Annabelle Palmer
Read more:
Standard & Poor's
Moody's
Fitch
US debt ceiling
Ken Taubes
Pioneer
David Harris
Schroders
Clive Stainton
The US government deal is unlikely to be enough to satisfy the rating agencies with both Standard & Poor’s and Moody's saying they will still consider a downgrade of the its triple-A credit rating, whileFitch has stated it would only do so if an interest payment was missed. According to Eric Friedland, head of municipal credit research at Schroders, at some point the US will have to prepare itself for a lower credit rating: “There will most likely be some sort of downgrade but it won’t come soon.”
If the US lost its triple-A rating...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
