Skip to main content

S&P downgrades U.S. credit rating from AAA to AA+


The United States has lost its sterling credit rating.
Credit rating agency Standard & Poor’s on Friday lowered the nation’s AAA rating for the first time since granting it in 1917. The move came less than a week after a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion -- a tumultuous process that contributed to convulsions in financial markets. The promised cuts were not enough to satisfy S&P.

While the downgrade was not a surprise, some selling is expected when stock trading resumes Monday morning. 


One fear in the market has been that a downgrade would scare buyers away from U.S. debt. If that were to happen, the interest rate paid on U.S. bonds, notes and bills would have to rise to attract buyers. And that could lead to higher borrowing rates for consumers, since the rates on mortgages and other loans are pegged to the yield on Treasury securities.


However, even without an AAA rating from S&P, U.S. debt is seen as one of the safest investments in the world. 


A study by JPMorgan Chase found that there has been a slight rise in rates when countries lost an AAA rating. In 1998, S&P lowered ratings for Belgium, Italy and Spain. A week later, their 10—year rates had barely moved.Japan had its ratings cut a decade ago to AA, and it didn’t have much lasting impact. The credit ratings of both Canada and Australia have also been downgraded over time, without much lasting damage.


S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

Comments

Popular posts from this blog

कर्ण और कृष्ण का संवाद - रामधारी सिंह 'दिनकर'

Following is excerpt from poem Rashmirathi written by Ram dhari singh dinkar. Karna reply to Krishna when he told story of his birth and ask him to join pandava side. सुन-सुन कर कर्ण अधीर हुआ, क्षण एक तनिक गंभीर हुआ,  फिर कहा "बड़ी यह माया है, जो कुछ आपने बताया है  दिनमणि से सुनकर वही कथा मैं भोग चुका हूँ ग्लानि व्यथा  मैं ध्यान जन्म का धरता हूँ, उन्मन यह सोचा करता हूँ,  कैसी होगी वह माँ कराल, निज तन से जो शिशु को निकाल  धाराओं में धर आती है, अथवा जीवित दफनाती है?  सेवती मास दस तक जिसको, पालती उदर में रख जिसको,  जीवन का अंश खिलाती है, अन्तर का रुधिर पिलाती है  आती फिर उसको फ़ेंक कहीं, नागिन होगी वह नारि नहीं  हे कृष्ण आप चुप ही रहिये, इस पर न अधिक कुछ भी कहिये  सुनना न चाहते तनिक श्रवण, जिस माँ ने मेरा किया जनन  वह नहीं नारि कुल्पाली थी, सर्पिणी परम विकराली थी  पत्थर समान उसका हिय था, सुत से समाज बढ़ कर प्रिय था  गोदी में आग लगा कर के, मेरा कुल-वंश छिपा कर के  दुश्मन का उसने काम किया, माताओं को बदनाम किया  माँ का पय भी न पीया मैंने, उलटे अभिशाप लिया मैंने  वह तो यशस्विनी बनी रह

Scheme for creation of National Optical Fiber Network for Broadband connectivity of Panchayats

The Union Cabinet recently approved a scheme for creation of a National Optical Fiber Network (NOFN) for providing Broadband connectivity to Panchayats. The objective of the scheme is to extend the existing optical fiber network which is available up to district / block HQ’s level to the Gram Panchayat level initially by utilizing the Universal Service Obligation Fund (USOF). The cost of this initial phase of the NOFN scheme is likely to be about Rs.20,000 crore. A similar amount of investment is likely to be made by the private sector complementing the NOFN infrastructure while providing services to individual users. In economic terms, the benefits from the scheme are expected through additional employment, e-education, e-health, e-agriculture etc. and reduction in migration of rural population to urban areas. As per a study conducted by the World Bank, with every 10% increase in broadband penetration, there is an increase in GDP growth by 1.4%. NOFN will also facilitate implemen

किसको नमन करूँ मैं भारत? - Kisko Naman Karu Mein Bharat?

A poem dedicated to the nation written by Ramdhari Singh "dinkar"... तुझको या तेरे नदीश, गिरि, वन को नमन करूँ, मैं ? मेरे प्यारे देश ! देह या मन को नमन करूँ मैं ? किसको नमन करूँ मैं भारत ? किसको नमन करूँ मैं ? भू के मानचित्र पर अंकित त्रिभुज, यही क्या तू है ? नर के नभश्चरण की दृढ़ कल्पना नहीं क्या तू है ? भेदों का ज्ञाता, निगूढ़ताओं का चिर ज्ञानी है मेरे प्यारे देश ! नहीं तू पत्थर है, पानी है जड़ताओं में छिपे किसी चेतन को नमन करूँ मैं ? भारत नहीं स्थान का वाचक, गुण विशेष नर का है एक देश का नहीं, शील यह भूमंडल भर का है जहाँ कहीं एकता अखंडित, जहाँ प्रेम का स्वर है देश-देश में वहाँ खड़ा भारत जीवित भास्कर है निखिल विश्व को जन्मभूमि-वंदन को नमन करूँ मैं ! खंडित है यह मही शैल से, सरिता से सागर से पर, जब भी दो हाथ निकल मिलते आ द्वीपांतर से तब खाई को पाट शून्य में महामोद मचता है दो द्वीपों के बीच सेतु यह भारत ही रचता है मंगलमय यह महासेतु-बंधन को नमन करूँ मैं ! दो हृदय के तार जहाँ भी जो जन जोड़ रहे हैं मित्र-भाव की ओर विश्व की

Few lines by me for my Dearest sister

At the age of one year.....   I knocked the heaven's door.... God asked " My son , r you not happy on the beautiful earth where you have your angel mother and divine father" I replied " But i don't have anyone like other children to play with and spend time " God Said " Don't worry , I will make sure that you have the best sister on the earth " Two days later i again knocked the door..... God asked " now what happened" I replied " I need a friend too as other people on the earth have" God said " My dear son, your sister will be your best friend" Down the line after many years ...during my teenage I once again knocked the door..... God asked " r u still unhappy " I replied " I am very happy with my life but there is no one around m to understand me and my thoughts " God said " oh !! that's not a problem , it will b again your sister, who shall unders