Despite a temporary budget compromise in Washington, China’s Dagong agency has downgraded the United States. Dangong maintains a negative outlook on the sovereign credit, as revenue and GDP fail to keep up with the country’s massive debts.
The Beijing-based Dagong agency, one of the few notable non-US based credit rating agencies, has downgraded America to an ‘A -‘rating from ‘A’.
The move came shortly after Congress and President Obama narrowly averted a technical default. Fear the world’s largest economy may default on its widely dispersed Treasury Bonds is making investors re-evaluate political and financial stability in the US.
“The government is still approaching the verge of a default crisis, a situation that cannot be substantially alleviated in the foreseeable future,” the Dagong agency said in a press release.
Ratings by Dagong are not internationally recognized, and will likely hold only symbolic, and not market, implications.
RT has the full article
