By Patrick Chovanec:This week, all three of the top three credit agencies — S&P, Moody’s, and Fitch — signaled that they would continue giving U.S. Treasuries their top (AAA) rating in light of the political deal struck over the weekend to raise the U.S. debt ceiling in return for at least $2.1 trillion in spending cuts. However, one agency — the Chinese credit rating agency Dagong — announced Tuesday that it was downgrading U.S. debt from A+ to A with a negative outlook. Given the timing, and concerns over global reaction to the fractious debt ceiling stand-off, the announcement attracted more attention than normal.
I was on CNN yesterday as part of a report on Dagong’s downgrade and what (if anything) it may mean. You can watch that report here. I was also interviewed on Bloomberg this morning, on the very same subject; you can check out what I had to say