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Tuesday, May 3, 2011

US Debt rating "C" from " AAA" : Agency

According to a report from an independent rating agency, US debt rated at "C". 

From last month there is continuously rising debate over US sovereign rating, after S&P had downgraded AAA rating from stable to negative implying that rating cut could happen in 2 years.

"A 'C' is equivalent to approximately a triple-B on the S&P, Moody's and Fitch scales. It's two notches above junk and one notch above the equivalent of a single A," Martin Weiss, President of Weiss Ratings, told CNBC Tuesday. He also added that although rating seems weak, debt situation is not in a danger zone as there is a strong demand for Treasury.

The U.S. government debt is fast approaching the $14.3 trillion ceiling, with the debt-to-GDP ratio close to 100 percent. And a downgrade of U.S. Treasurys - one of the most widely held assets - could theoretically raise borrowing costs and in a worst case scenario, trigger a default on the government's debt obligations.

America's rating was ranked 33rd out of 47 nations, according to Weiss, which began tracking sovereign debt last year. France and Japan also got a "C" rating, while Only China and Thailand received an "A" rating
See all credit ratings and reports, follow the link below

(Source: CNBC )


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