FX.co ★ Standard & Poor’s analysts discerned “low” default risk in USA

Standard & Poor’s threatened to reduce the US credit rating becoming the second agency doubted the ability of Washington to pay the debts in time. In particular, S&P announced that there was at least 50% potential that the US credit rating would be reduced during the next three months. At the same time, S&P noted that the default risk was “low” but it continued increasing. S&P would reduce the highest rating of the United States from AAA to AA if the White House fails to make the US Congress to increase the upper limit of the state debt from the current 14.3 trillion dollars. In case of reverse Washington will have to miss the pay back, Dow Jones Newswires reminds. On July 13 Moody’s rating agency sent the American rating AAA for the review with negative forecast which meant inevitable downgrading. The agency reported that in case the debt limit set by the law was not increased the US Treasury would face the debt default. Meanwhile, Fitch Ratings, the third largest rating agency, saves the US rating at the same level waiting for the debt limit to be increased at the near time. Fitch see the default as remote possibility. US Congress refuses to increase the upper level of the state debt before the budget deficit is agreed to decrease from 1.29 trillion dollars fixed in the previous year. US Treasury notified that in case the debt limit remains the same after August 2 the US Government would start paying debts selectively. On July 14, the Head of the US Federal Reserve System Ben Bernanke, by imparting of Reuters, said that budget deficit reduction had potential hazard for recovery of the biggest economy in the world. In Bernanke’s opinion, the US state debt default will have catastrophic consequences for the American and economy of the whole world.