Debt Rating Agencies Not Fair - Although the U.S. debt almost impossible to pay off, rating of The U.S. debt is still predicated AAA, meaning free from any risk. AAA also means that U.S. debt is still the best. However Dagong Global Credit Rating Co., a rating agency of China, on Wednesday (03/08/2011), has lowered U.S. debt rating from A + to A.
But not so with the Standard & Poor's (S & P), Moody's Investors Service and Fitch, these world rating institutions retains AAA rating for U.S. debt. In fact, the S & P itself has warned the U.S. government to should immediately reduce its spending U.S. $ 4 trillion U.S. dollars.
The U.S. Congress only agreed to a decrease in government spending of 2.4 trillion U.S. dollars. Fitch has confirmed that the relative safety of sovereign debt is a maximum of 72 percent of gross domestic product (GDP). The portion of U.S. debt has reached 100 percent of GDP.
Is it fair if these agencies gave AAA ratings on the U.S. debt? Compare with bonds of Greece, Portugal, Ireland who has been directly downgraded.
Greek bonds for example are equated with "junk". Three rating agencies from the U.S. was only put the rating of "negative outlook" on the U.S. debt, aka it has potential if the rating will decrease.
