U.S. expecting debt downgrade: ABC News

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A trader stands outside the New York Stock Exchange following the end of the trading day, August 4, 2011.

Credit: Reuters/Brendan McDermid

WASHINGTON | Fri Aug 5, 2011 6:48pm EDT

WASHINGTON

(Reuters) – The U.S. government expects its debt to be downgraded by credit ratings agency Standard & Poor’s from its current triple-A rating and is preparing for the event, ABC News said on Friday.

ABC cited an unnamed government official as its source and said it was uncertain whether the rating would drop from triple-A to AA+ or to AA.

The report said the main reasons likely to be cited for a U.S. downgrade by S&P included political confusion surrounding the process of hiking the debt limit and doubt that agreement would be reached on more deficit reductions.

Standard & Poor’s warned last month that the United States was at risk of a downgrade if it did not raise the debt ceiling and cut the country’s debt by $4 trillion over a decade.

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Comments (2)

empower28 wrote:

TEA PARTY B******S. Thank you Tea Party.

Aug 05, 2011 6:33pm EDT  —  Report as abuse

empower28 wrote:

Thank you Tea Party. Remember to spend this evening figuring out ways to shift the blame. You have to overcome one thing: had you not taken America hostage this would not have happened.

Aug 05, 2011 6:34pm EDT  —  Report as abuse

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