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Tuesday, August 09, 2011

What Does the S&P Downgrade Mean, If France Is Rated Higher Than the U.S.?

The decision by credit rating agency Standard & Poor’s to downgrade the United States [1] after markets closed on Friday may have kicked up political [2] consternation [3] and triggered a market plunge [4], but it also raises important questions about the reliability of credit ratings and, for that matter, the firms that bestow them.

Just over a dozen countries currently have an AAA [5]—or lowest-risk—rating from each of the three main rating agencies: Moody’s, Fitch, and Standard & Poor’s. Until this weekend, the United States was among them. (It’s now roughly on par with Australia, which also has two AAAs and one AA+.)
 

3 comments:

  1. It means decades of trickle down economics have not worked.

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  2. Obama and Michelle are throwing a Black Panther party b/c of this down fall of the White Man's country...

    ReplyDelete
  3. It means France should immediatly send me a case of Merlot and a brick of Cheddar. I prefer aged sharp!

    ReplyDelete

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