S&P Financial Rating On the USA Revised To NEGATIVE

  • We have affirmed our ‘AAA/A-1+’ sovereign credit ratings on the United
    States of America.
  • The economy of the U.S. is flexible and highly diversified, the country’s
    effective monetary policies have supported output growth while containing
    inflationary pressures, and a consistent global preference for the U.S.
    dollar over all other currencies gives the country unique external
    liquidity.
  • Because the U.S. has, relative to its ‘AAA’ peers, what we consider to be
    very large budget deficits and rising government indebtedness and the
    path to addressing these is not clear to us, we have revised our outlook
    on the long-term rating to negative from stable.
  • We believe there is a material risk that U.S. policymakers might not
    reach an agreement on how to address medium- and long-term budgetary
    challenges by 2013; if an agreement is not reached and meaningful
    implementation is not begun by then, this would in our view render the
    U.S. fiscal profile meaningfully weaker than that of peer ‘AAA’
    sovereigns.
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