U.S. Might Lose Triple A Second Best Score In A Few Months

"It's just a matter of time before the assessment is cut by the government," Steve Ricchiuto, Mizuho Securities' chief economist, said in a report.
"I would not be surprised if S & P puts the Treasury wary of another downgrade in the coming weeks and Fitch Moody or move before December 23 when the legislation that implements the recommendations of the deficit was expected to be Super adopted, "he added.
Click to play Triple-money companies dividendsSmart Jack Hough outlines the AAA-rated corporate credit rating better than the U.S. government, which pays a dividend at least 3% of the net.
The extent and severity of the actions depend on how politicians manage trust or automatic cuts scheduled for 2013, and charges and additional services.
Congress Joint Committee on deficit reduction, better known as supercommittee, announced Monday night that he failed to reach agreement on a plan to reduce $ 1.2 trillion deficit that will result in savings equal to that amount to come into force in the 2013th Read about supercommittee missing
Citigroup also believes that a downgrade is coming.
"Political leaders who seek to end the run kidnap accelerate the downgrade by Moody's, which now seems likely in the first half of next year," said Greg Anderson, senior FX strategist at Citigroup.
The United States is ranked AAA with negative outlook by Moody. A court following a decision by Standard & Poor, August 05 to reduce its rating of the U.S. AA + from AAA.
When the stock market opened for trading on the following Monday, panic selling pulled the Dow Jones Industrial Average down more than 600 points, its worst day since the end of 2008.
News of the impasse is supercommittee battered Monday by Dow slipping in negative territory for 2011. The benchmark index fell 248.85 points, or 2.1%, to close at 11,547.31. Last Tuesday, the effect dampened investors shifted their return to Europe, are struggling with debt woes of its own. Read MarketWatch Stock Report
Moody supercommittee no results "decisive"
Moody on Tuesday declined to comment on a special day again, but said that negotiations are not supercommittee would be "crucial" to analyze the U.S. classification.
"As Moody said on November 1st, the Joint Committee's deliberations would be informative to select the log analysis, but not essential, and failure to reach an agreement is not in itself lead to a rating change to the U.S. government, "said Moody's said in a statement.
Earlier this month, Moody's also noted that the analysis of the rating of the United States "to include all government actions taken during 2012, including the budget for fiscal year 2013, resulting from the elections of November 2012 , and how the so-called "Bush tax cuts," managed by the end of the year. "
Economic performance is also an important factor, he added, as this will affect the budget.
Department of Commerce this morning, said that the U.S. economy grew by 2.0% in the third quarter compared to the first reading of 2.5%, as businesses reduced inventories and reduced investment

Bookmark and Share

Blog Archive