A Chinese ratings agency downgraded its U.S. 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 U.S. local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.
The announcement came after the U.S. 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 U.S. politicians had held the rest of the world hostage in the crisis.The Raw Story
China downgrades U.S. credit rating and accuses lawmakers of holding world hostage
Agence France-Presse
4 comments:
Though far less prominent than widely-discredited Western competitors Moody’s, Fitch and Standard and Poor’s, the stupid is strong with Dagong and they have been working to further raise their profile.
They expect it will be easy to receive air time on Squawk Block and OutBack with Erin Burnett, and thus have set their sights higher on GE-owned MSNBC.
Tyler I believe the COMCAST people have bought out all of that stuff...
rsp,
Government should not be in the business of collecting or creating usury for the rich since charity should be limited to those who need it, not to those with the most fiat to hoard!
He who oppresses the poor to make more for himself or who gives to the rich, will only come to poverty. Proverbs 22:16 [bold added]
Poverty comes in many forms as any acquaintance with the materially rich but spiritually poor will quickly inform.
Just think of how much further interest rates would have fallen today if they didn't downgrade us.
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