Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

S&P’s Beers Doesn’t Expect ‘Much’ Market Impact From Downgrade

Aug. 7 (Bloomberg) -- Financial markets probably won’t react significantly to the Aug. 5 decision by Standard & Poor’s to downgrade the U.S. credit rating, said David Beers, S&P’s managing director of sovereign ratings.

“Based on historical experience we wouldn’t expect that much financial impact,” Beers said today on the “Fox News Sunday” program. “The markets are reacting to a lot of factors, not just what S&P said on Friday,” Beers said, noting concern among investors that global economic growth may slow.

S&P said in a statement with the downgrade that the U.S. political system failed to adequately address deficit reduction in the compromise law that President Barack Obama signed Aug. 2 to avert a U.S. default on its debt.

The U.S. Treasury Department issued a statement saying S&P had acknowledged an “error” in its calculations, making a $2 trillion mistake. The rating company then changed the rational for its decision, raising “fundamental questions about the credibility and integrity of S&P’s ratings action,” John Bellows, acting assistant secretary for economic policy, wrote in a Treasury blog on Aug. 6.

“That’s a complete misrepresentation of what happened,” Beers said, dismissing suggestions that the downgrade wasn’t justified and saying the U.S. debt burden will rise “most likely over the next decade.”

To contact the reporter on this story: James Tyson in Washington at jtyson@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.