Barron’s (April 23)
A U.S. debt downgrade is “likelier than not.” Rating agency Egan-Jones placed the U.S. on a negative watch over a month before S&P generated uproar with its lower outlook. Moreover, Egan-Jones Ratings has a better track record. It foresaw corporate problems that other agencies missed or ignored. The extent of the Egan-Jones action should be worrying for the federal government. “On March 1, Egan-Jones put the U.S. government’s triple-A rating on negative watch—a further step down the credit ladder from a negative outlook. It means a downgrade to double-A-plus is more likely than not.”
A U.S. debt downgrade is “likelier than not.” Rating agency Egan-Jones placed the U.S. on a negative watch over a month before S&P generated uproar with a lower outlook. Moreover, Egan-Jones Ratings has a better track record. It foresaw corporate problems that other agencies missed or ignored. The extent of the Egan-Jones action should be worrying for the federal government. “On March 1, Egan-Jones put the U.S. government’s triple-A rating on negative watch—a further step down the credit ladder from a negative outlook. It means a downgrade to double-A-plus is more likely than not.”
http://online.barrons.com/article/SB50001424052970203583604576271080879008522.html?mod=BOL_twm_mw
Tags: Credit, Egan Jones, Ratings agency, S&P, U.S.