Sunday, December 11, 2011

Credit rating agencies braced for US downgrade amid political stalemate

2:28 PM | Posted by Free Game Zone | Edit Post

S & P and Moody warned debt of disqualification if the U.S. fails to meet its payments to the band of the dollar's reserve currency status

expectations that the rating agencies is taken from the American class maximum credit rating ignore the needs of its loans rose Monday amid little sign of agreement between President Obama and his Republican opponents.

With a duration of 2 August by an increase in the debt limit $ 14.3tn (£ 9tn), Gary Jenkins, head of broker development of fixed income research, said that 'there was a "high probability" of the agency for the degradation of Standard & Poor's U.S. coveted triple-A rating.

"The probability that the debt ceiling is high -. US High probability of achieving a credible solution to the debt on the rise in the immediate future - with a low probability of S & P downgrade U.S. sovereign rating on it three months -. high, "says Jenkins

S & P and Moody's warned it could reduce the debt, if the U.S. does not meet their payments in a move that could cause turbulence in global markets, forcing higher rates to separate high and the U.S. dollar's status as reserve currency.

Fitch Ratings warned Monday that if the U.S. debt ceiling is raised before the deadline of August to consider the possibility of lowering the U.S. within three to six months.

"agreement on a credible fiscal consolidation strategy to ensure the U.S. state AAA, to do so will inevitably weaken the sovereign credit profile and may lead to a lowering of the sovereign rating," said Fitch. It was the United States Notes on negative watch called once before - in November 1995 - where he remained for nearly six months in which federal funding has failed
  • Although Jenkins believes that the debt ceiling will be increased over time, despite the 11 o'clock position for U.S. politicians, their concern is that the solution will not be credible in the long term, which could effectively result in a downgrade.
  • "I think it is clear that the U.S. will be downgraded in mid-September 2011. In fact, I would put the probability of an event around 80%," said Jenkins. He cited the ceiling of the debt and the fiscal position over the medium term on the reasons for S & P warns against the possibility of a downgrade. S & P said it would maintain its AAA rating, if an agreement could be reached on the $ 4TN reductions and should be maintained throughout the decade. "Who reads to me like a demotion, unless certain events occur." Jenkins said.
"In the short term, while all eyes on the ceiling of debt negotiations. However, if a compromise is reached that does not understand the desire to reduce the overall level of U.S. debt .. UU and mark your calendar for mid-September - I agree that it can move forward - and let us know if there is a difference in a world where the last "safe" tool is not even a notation AAA "Jenkins said in a note to clients". / Aa>
The White House has rejected the latest Republican plan to force spending cuts and tax increases rule, as the negotiations on the country's debt continued. The White House described the Republicans as it can cause a "blow to the economy."



Find best price for : --Fitch----Obama--

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Blog Archive

Blogger Template created with Artisteer.