Thread: Chinese agency downgrades US credit rating

AP
17 October 2013

"The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged," Dagong said in the statement, adding Washington's solvency was vulnerable as old debts were still repaid through raising new debts.

Chinese agency downgrades US credit rating

AFP - A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington's resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained "unchanged".

Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.

The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation's borrowing authority and ends a two-week government shutdown.


"The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged," Dagong said in the statement, adding Washington's solvency was vulnerable as old debts were still repaid through raising new debts.

"Hence the government is still approaching the verge of default crisis, a situation that cannot be substantially alleviated in the foreseeable future," it said.

Dagong made headlines in August 2011 when it lowered its main rating for US sovereign debt after Congress passed an earlier bill to raise Washington's debt ceiling.

The agency, which is far less prominent than long-established Western competitors including Moody's, Fitch and Standard and Poor's, has been working to further raise its profile.

China's official news agency Xinhua said Thursday in a bylined commentary that US politicians had held the rest of the world hostage in the crisis.

But Beijing welcomed the agreement, saying it will contribute to global economic stability.

http://www.france24.com/en/20131017-...-credit-rating

Don’t Buy the Hype: U.S. Remains World’s Safe Haven Despite D.C.'s Antics

Chinese agency downgrades US credit rating

by ADMIN on OCTOBER 17, 2013

A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington’s resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained “unchanged”.
Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.
The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation’s borrowing authority and ends a two-week government shutdown.
“The fundamental situation that the debt growth rate significantly outpaces that of fiscal income and gross domestic product remains unchanged,” Dagong said in the statement, adding Washington’s solvency was vulnerable as old debts were still repaid through raising new debts.
It’s likely lawmakers will again play Chicken Little come February and ask for yet another increase in the borrowing limit. That’s why we need to contact congress now and demand them to do the opposite.

This article was written by AFP; continue reading at France 24 …

Tagged as: chinese dock U.S. credit rating, debt ceiling hike 2013, U.S. credit score lowered by Chinese


http://www.conservativeactionalerts....credit-rating/