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Tuesday, July 19, 2011

Egan-Jones Cuts U.S. Rating to AA+ On Spending-Cut Concern

Egan-Jones Ratings Co. cut its rating on the U.S. by one step to AA+ from AAA, citing the high level of debt outstanding relative to other countries and concern that politicians may fail to reduce spending.

“The major factor driving credit quality is the relatively high level of debt and the difficulty in significantly cutting spending,” the firm said July 16 in a report. Egan-Jones placed the U.S. on negative watch on March 1.

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[You'll note that a failure to raise the debt ceiling had nothing to do with this-- they said it's too high already.-- Editor]

1 comment:

Anonymous said...

The scare tactics and roughing up tactics have started now!
Why can't they ALL just be HONEST about what's really going on!?