Chinese Credit Rater Downgrades U.S. – MarketBeat – WSJ

(*Editor) – What does this have to do with you and I running our Business?


The times will get tighter, and we will have to work smarter.

This is also a rather worrying development if your Company hedges currency.

The western front of the United States Capitol...

Image via Wikipedia

>The United States has lost its double-A credit rating with Dagong Global Credit Rating Co., Ltd., the first domestic rating agency in China, due to its new round of quantitative easing policy.

Dagong Global on Tuesday downgraded the local and foreign currency long-term sovereign credit rating of the U.S. by one level to A+ from previous AA with “negative” outlook.

The Chinese rating agency said the downgrade reflected the U.S.’s deteriorating debt repayment capability and drastic decline of the U.S. government’s intention of debt repayment.

“The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency,” Dagong said in a report.

via Chinese Credit Rater Downgrades U.S. – MarketBeat – WSJ.