CNN: U.S. credit rating outlook lowered by S&P
…the ratings agency lowered its outlook for America's long-term credit rating to "negative" from "stable," based on the uncertain political debate around the nation's fiscal problems.
The outlook means that there is a one-in-three likelihood that it could lower the long-term rating on the United States within two years, S&P said.
"The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium- and long-term fiscal challenges will persist until at least after national elections in 2012," said S&P credit analyst Nikola Swann….
In its report, S&P said its outlook change was based on the growth of the United States' deficits over the last several years as a percentage of gross domestic product, the broadest measure of economic activity.
From 2003 to 2008, the nation's general government debt varied between 2% and 5% of GDP, which is "noticeably larger" than other countries with "AAA" ratings, according to S&P.
In 2009, as the government increased spending to stimulate the economy, S&P said the U.S. debt load "ballooned" to more than 11% and has yet to come down….
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