Merrill Lynch Sees U.S. Credit-Rating Being Lowered by Year-End

The U.S. government’s credit rating probably will be lowered again this year as the so-called super committee fails to produce a credible plan to rein in budget deficits, Bank of America Corp.’s Merrill Lynch unit said in a note to clients.

While the impact of a downgrade may not be as severe as the reaction in August when Standard & Poor’s cut the U.S.’s credit grade, such an action is among the reasons that the risks are increasing of a recession next year, according to Merrill Lynch economists.