According to Standard & Poor's, the USA is no longer worthy of a ‘AAA' sovereign debt rating. Novatis Asset Management's Frank Dolan asks, so what?
S&P has downgraded the USA's credit worthiness to ‘AA+'. That's on a par with Belgium, a notch above Chile (‘AA') and one below us (UK - ‘AAA'). The ratings agency on its website (www.standardandpoors.com) states: "An obligation rated ‘AAA' has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong." and "An obligation rated ‘AA' differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong." The...
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