Question Details

What will be S&P next US credit rating?

What will be S&P next US credit rating?

Asked by: Super Userkruijs in Business » Economics
currently Open, suspends 09/29/2025 22:30 (in )

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Background

Credit rating agency Standard & Poor's on Friday downgraded the credit rating of the United States, stripping the world's largest economy of its prized AAA status.

In July, S&P placed the United States' rating on "CreditWatch with negative implications" as the debt ceiling debate devolved into partisan bickering.

To avoid a downgrade, S&P said the United States needed to not only raise the debt ceiling, but also develop a "credible" plan to tackle the nation's long-term debt.

http://money.cnn.com/2011/08/05/news/economy/downgrade_rumors/?iid=Lead

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   Super Userkruijs

historical ratings found here:
https://tradingeconomics.com/united-states/rating

   Super UserJosef Biesenberger

Fitch takes a move and changes outlook to negative / keeps AAA:
https://tradingeconomics.com/united-states/rating

   Super Userkruijs

Fitch Ratings on Friday upgraded its outlook for the U.S. AAA credit rating, removing the nation from a downgrade watch after politicians put off another debt limit battle until next year.

The company, one of three major credit rating firms, changed the outlook for the rating to stable from a negative watch put in place in October.

http://www.latimes.com/business/money/la-fi-mo-fitch-credit-rating-debt-limit-20140321,0,1977499.story

   Super Userkruijs

The three main credit rating agencies have all warned, in varying degrees, the United States rating could be cut should it hit an expected October 17 deadline when Washington is set to run out of cash, endangering its ability to pay its debt.

http://www.reuters.com/article/2013/10/07/us-usa-fiscal-ratings-idUSBRE9960SI20131007

   Super Userkruijs

Standard & Poor's on Monday removed the near-term threat of another credit rating downgrade for the United States by revising its outlook to stable from negative, citing an improved economic and fiscal outlook.

The change effectively means there is less than a one-third chance of a downgrade in the next two years.

S&P said a key factor to its revision in the U.S. rating outlook was the agreement reached by the U.S. Congress to avoid the 'fiscal cliff', which had threatened some $600 billion in automatic tax increases and spending cuts.

S&P cut the U.S. sovereign credit rating in August 2011 to AA-plus from the highly coveted top grade of AAA, citing political brinkmanship and gridlock in Washington that delayed an otherwise routine raising of the nation's debt ceiling.

http://www.reuters.com/article/2013/06/10/us-usa-rating-sp-idUSBRE9590K820130610

   Super Userkruijs

The ratings agency Standard & Poor's issued a statement Monday that said the committee's failure to reach agreement would not bring a downgrade of the U.S. credit rating, as long as the resulting automatic spending cuts remain intact.

At the same time, it remains unclear how the sharply divided Congress will reach agreement on a series of looming budget decisions, including an expiring payroll tax cut and calls for a new extension of unemployment benefits. Both questions need to be dealt with by the end of December.

http://edition.cnn.com/2011/11/21/politics/super-committee/?hpt=ibu_c1

   hfl13

@kruijs that was my reasoning against S&P´s Friday downgrade. Now I take them more seriously. They want real 4+ billion cuts and behaving politicians if not ....

The outlook at all three rating agencys is negative. As Canada & Australia show it takes years to gain back AAA once it is lost and the fundamentals still look terrible without tax increases and political deadlock till November 2012.

   bernardo

"Standard & Poor's managing director John Chambers said on Sunday there is a one in three chance of a further U.S. credit rating downgrade over the next six months to two years." http://www.reuters.com/article/2011/08/07/us-crisis-usa-chambers-idUSTRE7761C420110807

   Super Userkruijs

obviously, US based rating agencies value the US different from PIIGS. otherwise, they would have downgraded the US rating months ago.

   Super Userkruijs

I think that Moody and Finch will not follow, and with additional political pressure they will pull back from the down grade eventually.

   hfl13

Ask Greece, Portugal, Ireland.

Once the wall is brooken. I expect Moody & Finch to follow in a few month and then if the Supercongress fails they downgrade again.

This just shows how stupid the President & Republicans were - we just have to hope that the people thank them accordingly.

   Super Userkruijs

do you really assume that they will?

   hfl13

Negative outlook says it all - wrong starting odds.

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