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Thursday, August 11, 2011

S&P Credit Rating

After the credit rating downgrade of USA to AA+ from previous AAA by the credit rating agency S&P,  financial world came  under the clutch of the chaos.
Many funds, insurance companies and other financial institution are mandatorily required to invest in instruments with AAA ratings and US credit downgrade should have set them on the selling spree.
But what is interesting to know is, these institutions considers the average rating given by the top three credit rating agencies- Standard & Poor’s (S&P), Moody’s and Fitch. 
Moody’s & Fitch have not yet downgraded the USA’s credit rating and they are still continuing with AAA credit rating, so average of these ratings still make USA an AAA credit rated nation.
That's why president Obama confidently boasted that USA is still a AAA rated nation.
If Fitch and Moody’s downgrades US A’s credit rating in future, global investors and foreign governments are still left with many choices for their AAA credit rating requirement.

S&P Credit Rating


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