For the first time in history S&P lows US debt to AA+
August 6, 2011
The agency of credit classification Standard & Poor’s decided to low the US debt category that was until now AAA+ due to the public deficit. It happened despite the deal reached by democrats and republicans.
For the first time in US history, the major economy in the world has AA+.
S&P said, “The low shows our opinion about the plan of fiscal consolidation that the congress and the administration reached. It is not enough to stabilize the debt dynamics”.
The agency also said that its last revision was negative which means that another low is possible within 12 or 18 months.
On July 14 of the current year S&P set the revision of sovereign debt before the doubts that the Congress couldn’t work properly with deficit located in 1.4 billion dollars. This is 9% of GDP and it is the biggest deficits since World War II.
The doubts of US fiscal balance affected the treasure bonds that were considered the safest in the world, now the classification is minor than UK, Germany, France or Canada.