S&P Reiterates Warning of 50% Chance of U.S. Downgrade
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Standard & Poor’s reiterated that there is a 50 percent chance that it will lower the U.S. credit rating within three months as lawmakers struggle to reach agreement over raising the nation’s debt ceiling and deficit reduction.
S&P said on July 14 there was a one-in-two possibility that it would cut the U.S. AAA by one or more levels if the government hasn’t agreed on a “credible solution” on the nation’s debt level. The company reiterated the warning in a report today outlining three hypothetical scenarios.