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S&P lowers rating of U.S. debt to ’AA +’.

Last Friday, the rating agency Standard and Poor’s lowered the rating on the U.S public debt by one notch from ’AAA’ to ’AA +’, just days after the agreement between Republicans and Democrats.

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The U.S long-term debt rating was lowered due to concerns about rising budget deficits, S & P saying the new plan for debt reduction passed by Congress was inadequate to stabilize the country’s budget situation.

"The budget balancing plan on which Congress and the Executive have recently agreed is insufficient compared to what, in our view, would be needed to stabilize the public debt on the medium term" , said S&P.

The agency declared being "pessimistic" about the ability of Congress and government to make a broader rebalancing plan out of their previous agreement this week.

The United States had always being rated "AAA" by S & P since the creation of the agency in 1941. However, high fiscal deficit and rising public debt persistency caused S & P to downgrade the U.S. debt to "AA +" last April.

Several weeks earlier, the Chinese agency Dagong, had lowered the long-term rating of the United States, Great-Britain and France..

Next Finance , August 2011

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