For the first time in history, Standard and Poor’s have reduced the cr Get Your Ex Boyfriend Back edit rating of the US Government on Friday. The opinion of S&P is the fact that the federal debt ceiling approved by the US Congress will still be short enough to make the long term finances of the nation more stabilized.
Standard and Poor has also stated that the political leadership of America has not done much anything in the recent months to see that the nation is getting defaulted. As given by S&P, US debt rating will fall to AA+ instead of AAA. With this, US will fall in the same categories with the countries like China, Spain, Japan, Taiwan and Slovenia.
With this new credit rating of Standard and Poor, borrowing costs of US will increase because the investors will find their bonds to be very risky. With the higher cost of borrowing, the matter will have a spill over effect on the other areas like mortgage rates. Americans will have to shell out more money to buy their properties on loan.
However, two other leading credit rating agencies like Mood’s Investors Service and Fitch Ratings will keep the rating of US government as AAA. Both these agencies have warned that the nation must do something immediate to reduce it’s debt, which stands at $14.3 trillion.