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.
Boston Globe (April 23)
The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”
