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Chinese rating agency downgrades U.S. credit rating after debt limit increase

08-03-2011 08:14 BJT

BEIJING, Aug. 3 (Xinhua) -- Chinese rating agency Dagong Global Credit Rating Co. said Wednesday it has cut the credit rating of the United States from A+ to A with a negative outlook after the U.S. federal government announced that the country's debt limit would be increased.

The decision to lift the debt ceiling will not change the fact that the U.S. national debt growth has outpaced that of its overall economy and fiscal revenue, which will lead to a decline in its debt-paying ability, said Dagong Global in a statement.

The U.S. House of Representatives on Monday approved legislation to raise the U.S. debt limit by at least 2.1 trillion U.S. dollars and cut federal spending by 2.4 trillion U.S. dollars, one day before a threatened default.

U.S. Senate passes last-ditch debt ceiling deal

U.S. President Barack Obama speaks to the media at the White House in Washington D.C., the United States, Aug. 2, 2011. The U.S. Senate Tuesday passed a last-minute bipartisan debt ceiling deal to stave off a looming debt default crisis. Full story>>

Wall Street drops on economic concerns after Washington debt deal

The Wall Street closed sharply lower on Tuesday after Washington debt battle as investors lost confidence on economic recovery, with the S&P 500 hitting the lowest point for the year. Full story>>

Obama signs bipartisan debt ceiling bill into law

U.S. President Barack Obama Tuesday afternoon signed a bipartisan bill of raising the nation's debt limit into law, ending the month-long perilous stalemate and averting a potentially catastrophic debt default risk.Full story>>

Time bombs still ticking in Washington

The world-rattling debt limit fight in Washington finally ground out a truce Tuesday, just in time to pull the United States back from the brink of a possibly earth-shaking default. Full story>>

U.S. debt deal raises future concerns

Well, Junfeng, it looks like the fat lady was warming up her voice and ready to sing. Finally, a last minute deal by US lawmakers to raise the debt ceiling, but really, she's not gonna sing yet. It's just the end of act 1 isn't it? <Full story>

 

 

Relief short-lived, bigger cuts needed to resolve U.S. debt problem

A last-minute deal on the US debt ceiling brings welcome relief, but further negotiations involving much bigger cuts will be needed to resolve America's debt problem. That according to the chief of the OECD group of industrialized nations. <Full story>

Studio interview: How does U.S. get out of the vicious circle of using new debts to repay old ones?

For more insight, we have Professor Xiang Songzuo from Renmin University joining us in the studio. <Full story>

Downgrade of U.S. credit rating inevitable, China may diversify forex portfolio

The agreement reached by US lawmakers to raise the debt ceiling may have eased investor concern. But China, the largest foreign holder of US debt, is still faced with the challenge of diversifying a massive foreign exchange portfolio endangered by a weakening dollar. <Full story>

Studio interview: Should China diversity forex holdings against downgrading of U.S. credit rating?

Professor, let's look at where China fits into this. And actually, it's front and center, given it is the largest holder of US debt. What can China do to protect its foreign reserves, mostly made up of US Treasuries? Invest elsewhere? Where? <Full story>

 

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Editor:Wang Xiaomei |Source: Xinhua

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