Standard & Poor’s ‘negative’ rating on US credit sent stocks tumbling thanks in part to the politics of Washington on the budget and debate over raising the debt ceiling.
CNNMoney | U.S. credit rating outlook lowered by S&P
Standard & Poor’s lowered its outlook for the nation’s long-term debt Monday, based on the uncertain political debate around the nation’s fiscal problems.
The outlook means that there is a one-in-three likelihood that it could lower the long-term rating on the United States within two years, S&P said.
“The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium- and long-term fiscal challenges will persist until at least after national elections in 2012,” said S&P credit analyst Nikola Swann.
S&P maintained its top-tier ‘AAA/A-1+’ credit rating on U.S. sovereign debt, saying the nation’s “highly diversified” economy and “effective monetary policies” have helped support growth. But the ratings agency lowered its outlook for America’s long-term credit rating to “negative” from “stable,”