Guan Jianzhong: 'China Downgrades U.S. Credit Rating' [CNN]

http://edition.cnn.com/2011/BUSINESS/08/02/china.us.rating/index.html?eref=ig...
Chinese agency downgrades U.S. credit rating
By Steven Jiang, CNN
August 3, 2011 -- Updated 0334 GMT (1134 HKT)
Beijing (CNN) -- Although the United States narrowly avoided an unprecedented default following congressional approval of a last-minute compromise plan to raise the debt ceiling, China's leading credit rating agency Wednesday downgraded U.S. sovereign debt after putting it on negative watch last month.

The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reserve decided to continue loosening its monetary policy, announced a further downgrade to A, indicating heightened doubts over Washington's long-term ability to repay its debts.

It said the gloomy assessment -- much lower than the AAA ratings given by the so-called "big three" Western agencies Moody's, Fitch, and Standard and Poor's -- was inevitable given the level of market concern generated by the stalemate between Democrats and Republicans over the debt ceiling.

"The squabbling between the two political parties on raising the U.S. debt ceiling reflected an irreversible trend on the United States' declining ability to repay its debts," Dagong Chairman Guan Jianzhong told CNN.

Category:

News & Politics

Tags:

• china
• Guan
• Jianzhong
• cnn
• dagong
• global
• credit
• rating
• co
• debt
• deal
• republicans
• democrats
• US
• ceiling
• Congress
• Senate
• debate
• talks
• vote
• economy
• Wall
• Street
• AAA
• triple

[edwardtang1977]

Chinese opinions are underrated. They are the ones with trillions for loan. No one else has.

[Kaskeyable]

People are used to credit ratings issued by the 'big three' but the financial crisis has clearly proved them wrong. They can no longer shoulder the responsibility of rating the world. he's absolutely right