S&P downgrades US credit rating

[James Bond]

WASHINGTON: Credit rating agency

Standard & Poor's on Friday

downgraded the United States' credit

rating for the first time in the history of

the ratings.

 

 

The credit rating agency said that it is

cutting AMERICA'S TOP AAA RATING BY ONE NOTCH TO AA-PLUS. The credit

agency said that it is making the move

because the DEFICIT REDUCTION PLAN

passed by Congress on Tuesday DIDNOT go far enough to STABILZE THE

COUNTRY'S DEBT SITUATION.

 

S&P said that in addition to the

downgrade, it is issuing a negative

outlook, meaning that there was a

CHANCE it will LOWER THE RATING FURTHER

WITHIN THE NEXT TWO YEARS . It said such

a downgrade to AA would occur if the agency sees less reductions in

spending than Congress and the

administration have agreed to make,

higher interest rates or new fiscal

pressures during this period.

 

 

A source familiar with the discussions

said that the Obama administration feels the S&P's analysis contained

" DEEP AND FUNDAMENTAL LAWS."

[Yaswanth]

naaakemi artamkaledu bro, konchem clear ga chepandi .......

[DiehardNTRfan]

naaakemi artamkaledu bro, konchem clear ga chepandi .......

 

layman terms lo cheppalante us lo invest chesina,biz chesina nee investment ki gaurantee vundadu anedi credit ratings thagginchadam ante....iilanti situations lo emiavthundante the corprates,governments world over who have invested heavily in us govt bonds will start to withdraw thier investments because of lack of nammakam...so appudu stock markets panick avvadam,banks collapse avvadam,fin.institutions banckrupt avvatam jaruguthundi..as todays world is very closely linked aa effects migatha parts of the world paina paduthundi..idhi saramsam....

if you want to know more details and completely understand the phenomenon go through n.c.e.r.t world economy book....you can understand it properly..