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Saturday, August 6, 2011

U.S. Treasury hits back at S&P

The U.S. Treasury Friday night hit back against a Standard and Poor’s downgrade of U.S. top-notch credit rating, saying that the agency’s judgement was flawed.

“A judgment flawed by a 2 trillion U.S. dollars error speaks for itself,” a spokesperson of the Treasury said in a short statement.

The global rating agency stripped the world’s largest economy of its top AAA long-term sovereign credit rating and lowered it by one notch to AA-plus.

“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilise the government’s medium-term debt dynamics,” said the S&P.

“The outlook on the long-term rating is negative,” noted the agency, which means that it might further lower the U.S. credit rating.


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