S&P affirms reduced rating of long-term US debt

By CHRISTOPHER S. RUGABER, The Associated Press
Posted June 08, 2012, at 6:22 p.m.

WASHINGTON — The rating agency that downgraded the U.S. government’s long-term credit last year reiterated its assessment Friday, asserting that political leaders aren’t addressing the federal debt burden.

Standard & Poor’s says it’s keeping its rating of U.S. long-term debt at “AA+.” It cut its rating in August after a battle in Congress over whether to raise the nation’s borrowing limit. Previously, the government had received a “AAA” rating, reserved for the most credit-worthy borrowers.

Still, S&P says the United States has an “adaptable and resilient” economy, and many governments hold dollar reserves, a sign of confidence in the currency.

Investors seeking safety have been pouring money into Treasurys and driving down the interest they pay. The yield on the 10-year Treasury, at 1.64 percent, is near a record low.

http://bangordailynews.com/2012/06/08/business/sp-affirms-reduced-rating-of-long-term-us-debt/ printed on July 25, 2014