Its offical: U.S. Downgraded to ‘Near Junk’ by Weiss

Weiss had initiated its sovereign debt ratings in April, with an investment-grade rating for the U.S. of “C,” saying at that time that low rankings in the categories of debt burden, international stability and economic health, were partially offset by the nation’s “ability to borrow in the global marketplace.”

Weiss Ratings president Martin D. Weiss

The new “C-minus” rating translates roughly to investment-grade ratings of “BBB-” at Standard & Poor’s and “Baa3” at Moody’s, both of which are one notch above junk status.

The looming debt ceiling deadline in Congress and tortuous negotiations with President Obama, “not to mention the complete lack of any plan to address the nation’s obscene debt levels,” led to the rating action, according to Weiss Ratings senior financial analyst Gavin Magor.

TheWatchTowers.org
Translate »