Monday, April 18, 2011

S&P Cut Outlook From "Stable" to "Negative" For America’s Credit Rating

'Negative' means a 1/3 chance of downgrading within two years. This is the latest (and one of the more glaring) that the United States needs to change its spending course or risk financial calamity.

"Standard & Poor’s issued a stark warning to Washington on Monday, cutting its outlook on US sovereign debt for the first time and throwing more fuel on the raging debate over America’s swollen deficits.

The agency kept America’s credit rating at triple A but for the first time since it started rating US debt 70 years ago, cut its outlook from “stable” to “negative”. A negative outlook means there is a one-third chance of a downgrade in the next two years.

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