US Angry as S&P Downgrade Debt Rating

Finance | August 6, 2011, Saturday // 13:24|  views

File photo, EPA/BGNES

Standard & Poor's downgraded the debt rating of the USA from AAA to AA+, which is the first downgrading of the States for the agency's 70 years of existence.

The outlook of the States remains negative, as S&P forecast further downgrading.

This news comes just days after the US Congress finally negotiated a hard-won deal on raising the debt ceiling of the country.

A representative of the US government has already lashed out at the new rating, saying it was based on miscalculated revenue and spending.

"An assessment blemished by a USD 2 trillion error speaks for itself," said the US Department of the Treasury source.

On their part, S&P representatives motivated the downgrading with the protracted debate on the raising of debt ceiling, and the increasing distance between the position of the two political parties in the States.

Major investors and holders of US bonds Japan and China have reacted calmly, stating that they have retained trust in the US economy.

The Chinese government nevertheless called for a new currency to replace the dollar as the main currency of state reserves across the globe and called for more political far-sightedness in the States.

Saturday US President Barack Obama discussed with German Chancellor Angela Merkel and French President Nicolas Sarkozy the debt crisis in the Eurozone.

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Tags: rating, Congress, debt, Japan, China, states, US, USA, Standard & Poor's, Germany, France, Eurozone, Angela Merkel, Nicolas Sakrozy


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