El-Erian Says U.S. Downgrade Casts Doubt on Other AAA Countries

Standard & Poor’s reduction of the U.S. credit rating may make it harder for other top-rated countries to keep their AAA ranking, according to Mohamed A. El-Erian of Pacific Investment Management Co.

The downgrade by S&P “may well raise questions about other members of the dwindling AAA club,” El-Erian, 52, the Newport Beach, California-based chief executive officer and co-chief investment officer at Pimco, the world’s largest manager of bond funds, wrote in an e-mail today. S&P gives 18 sovereign entities its top ranking, including Australia, Hong Kong and the Isle of Man, according to a July report.