Reuters blog archive
from George Chen:
By George Chen
The opinions expressed are the author’s own.
You may think I am overly cynical today but let me first ask you a simple-yet-complicated question -- what is fair?
Global ratings agency Moody's said yesterday that the United States will retain its top AAA credit rating after President Barack Obama signed a bill to raise the federal debt ceiling. However, we heard very different opinions from China on the credit rating of the world's No.1 economy.
A Chinese ratings agency yesterday downgraded the U.S. from A-plus to A, saying the deal to lift the debt ceiling would not solve underlying U.S. debt problems or improve its debt-paying ability over the long term.
Dagong Global Credit Rating, a relative newcomer to the sovereign debt rating realm and little known outside of China, said in a statement that the U.S. decision to raise the borrowing ceiling would not change the fact that the growth of its debt had outpaced overall economic growth and fiscal revenue.