CNBC is reporting that the rating agency Standard & Poor’s is likely to downgrade America’s Triple-A credit rating, and that the move could come as early as tonight.
ABOVE THE POST UPDATE: Apparently, the failed Obama administration contacted S&P and are lobbying to be graded on a curve. CNN’s Lisa Desjardins reports that the Obamites have begging S&P not to downgrade Obama’s credit rating all evening. Friday night drama.
S+P SUMMARY: S+P was set to downgrade. Obama admin. said their analysis off by “trillions”. Now S+P revising figures. Downgrade still poss.
The working theory had been that rating agencies would need to see at least $4 trillion in spending cuts – real cuts – over ten years in the debt limit deal in order to avoid a downgrade, although S&P’s President would not give Congress a specific target number during testimony late last month.
Whatever the magic number he had in his head was, I guess it was more than $2.4 trillion in phantom cuts over ten years.
Throughout Friday, markets were rife with speculation that S&P, which has had a negative outlook on the U.S. since April 18, would downgrade the country’s credit from its current triple-A level.
On July 14, S&P put the government on a credit watch with negative implications, meaning there was at least a one in two chance the U.S.’s long-term debt would be downgraded within 90 days.
An S&P spokesman declined to comment on any possible plans for a downgrade or statement later Friday.
Heck of a job, Mike Fitzpatrick. Heck of a job. We sent you to Washington – against my better judgement I may add – to cut spending in a meaningful way. Even if we don’t wind up getting downgraded tonight or this weekend, America is clearly weaker for the phony debt deal you signed onto.