USA Long-Term Sovereign Credit Rating Lowered to AA+ from AAA

On 5 August, 2011 S&P Rating Services downgraded US to AA+ on political risks and rising debt burden. The outlook of the long-term rating is negative. The downgrade reflects S&P’s opinion that the recently agreed fiscal consolidation plan by Congress and the Administration is not adequate to stabilize the government’s medium-term debt dynamics.

John Chambers, Managing Director and Chairman Sovereign Rating Committee, commented that “we don’t see a consensus from Washington in the next few years” he also said that “there’ve been five governments that have gotten their AAA rating back but it has taken them between 9 to 18 years to do so.”