S&P: No plans to downgrade U.S. credit rating
Ratings agency Standard & Poor’s does not have any plans to downgrade the U.S. sovereign debt rating, but it believes credit risk may increase in the long term, a senior official at the agency said today, according to a Reuters report. Moody’s Investors Service warned a week ago that a lack of U.S. government action on the budget deficit increased the likelihood of it assigning a negative outlook to the country’s top AAA credit rating. On the same day that Moody’s warned about the U.S. rating last week, S&P cut Japan’s credit rating for the first time since 2002, saying that nation had no plan to deal with its mounting debt. Scott Bugie, S&P’s managing director for financial institutions, said the United States faced similar but less pronounced credit risks than other countries.