It’s all bad news now a day’s…
After Moody’s review on US current rating, two major rating agencies are on their way to downgrade US sovereign rating. S&P warns it could cut U.S. rating as soon as this month. A downgrade could raise borrowing costs not only for the United States but also for loans that use the Treasury rate as a benchmark. Some money managers that are restricted to investing only in AAA-rated assets would be forced to dump Treasuries, which could spread disruption through global financial markets.
An independent rating agency- Weiss ratings said, they are very close to downgrading the sovereign debt of the United States one more notch to a `C-`, which will put it just one notch above junk.
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