Key to making such decisions is John Chambers, the global head of S&P’s sovereign ratings committee and a member of the team, led by colleague Nikola Swann, that marked down America’s debt rating in 2011, from AAA to AA+. This time, if the House Republicans had not blinked, Chambers noted that S&P would have been forced to cut the debt rating again.
“If the government does discontinue debt-servicing, unless it is cured immediately, it goes into ‘selective default’,”said Chambers, citing S&P sources close to the heated talks in Washington. “Selective default” is the lowest of S&P’s 20 grades of untrustworthiness.Newsweek
Exclusive: S&P Says U.S. Was Minutes From Falling To Rock-Bottom Rating
Leah McGrath Goodman
3 comments:
A monetary sovereign has no need for a good credit rating since it has no need to borrow in the first place!
So yeah, keep trying Repugnicans and one day you may destroy the US's credit rating and many more will wonder why the US Government pays high interest rates for what it can create itself interest-free? And then where will the "corporate welfare" of sovereign borrowing be but in severe jeopardy? So thanks in advance! Who knew you were against corporate welfare?
And? Who cares?
Japan has a rating somwhere near junk but is able to "borrow" all the Yen it wishes.
These ratings agencies are fully separated from reality. The idea that they serve a purpose is a fiction (which some may choose to believe…a fool and his money are soon parted).
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