Thursday, August 4, 2011

China further lowers US credit rating

Guan Jianzhong, chairman of China's top ratings agency, Dagong Global Credit Rating Company

Source: Press TV

China's top ratings agency has once again downgraded the United States' credit rating, casting doubt on whether the US federal government is capable of paying its debt in the long term.

The Chinese agency, Dagong Global Credit Rating Company, lowered the US credit ratings from A+ to A on Wednesday, Xinhua reported.

"The squabbling between the two [American] political parties on raising the US debt ceiling reflected an irreversible trend on the United States' declining ability to repay its debts," the chairman of the Chinese credit ratings agency, Guan Jianzhong, said.

"The two parties acted in a very irresponsible way and their actions greatly exposed the negative impact of the US political system on its economic fundamentals," he added.

Infighting in the US Congress over raising the country's debt limit dragged on until Tuesday and within hours of the country's defaulting on its USD 14.3 trillion debt.

Dagong had earlier downgraded the US ratings from AAA to A+ in November after the US Federal Reserve loosened its monetary policy.

Officials in Beijing say a failure by Washington to control its massive debt could put the lives of millions of families within and beyond the US borders in danger.

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