Jump to content
House Price Crash Forum

Breaking - Us Credit Rating Downgraded

Recommended Posts

From the Market Ticker:

China downgrades US credit

Tuesday, November 09, 2010 10:08:03 AM

(CH) Chinese rating agency Dagong Global Credit downgrades US credit rating due to QE program (update) - Chinese press

- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook.

- "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession." Weaker dollar will hurt US ability to attract dollar capital reflow. "In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse"

Can't see the US based credit agencies ever doing likewise, unfortunately.

Link to post
Share on other sites

It will be interesting to see whether any Chinese entities have rules that prevent them from holding debt securities issued by entities rated below a certain level.

As an aside, isn't a downgrade from AA to A+ a two notch downgrade (unless they were actually AA- before).

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.