U.S. rating likely to be downgraded again: Merrill

[Gerald]

(Reuters) - The United States will likely suffer the loss of its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, Bank of America Merrill Lynch forecasts.The trigger would be a likely failure by Congress to agree on a credible long-term plan to cut the U.S. deficit, the bank said in a research note published on Friday.A second downgrade -- either from Moody's or Fitch -- would follow Standard & Poor's downgrade in August on concerns about the government's budget deficit and rising debt burden. A second loss of the country's top credit rating would be an additional blow to the sluggish U.S. economy, Merrill said."The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan" to cut the deficit, Merrill's North American economist, Ethan Harris, wrote in the report."Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes," he added.The bipartisan congressional committee formed to address the deficit -- known as the "super committee" -- needs to break an impasse between Republicans and Democrats in order to reach a deal to reduce the U.S. deficit by at least $1.2 trillion by November 23.

http://www.reuters.com/article/2011/...79M2J120111023


Note: Sun Oct 23, 2011

[Jimbuna]

Your thoughts and comments

[Gerald]

Originally Posted by jimbuna

Your thoughts and comments

Yes,

[Jimbuna]

Thought so

[Gerald]

Right,

[Jimbuna]

Less cut and paste gives more credibility