Obama Wins Credit Battle, China downgrades US credit rating

The Chinese credit rating agency, Dagong Global Credit Rating Co. Ltd, downgraded the United States local and foreign currency rating from A to A- with a negative outlook

Credit-RatingDagong said, “although the U.S. federal government managed to avoid a default crisis for the moment, its solvency remains vulnerable as for a long time the U.S. government has maintained its solvency by repaying its old debts through raising new ones, said the agency.”

“The government is still approaching the verge of a default crisis, a situation that cannot be substantially alleviated in the foreseeable future,” Dagong noted, adding the partial U.S. government shutdown is an inevitable outcome of its long-term failure to pay excessive debts.

AFP – A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington’s resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained “unchanged”.

Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook, the agency said in a statement.

The announcement came after the US Congress passed and President Barack Obama signed a bill that extends the nation’s borrowing authority and ends a two-week government shutdown.

Read More – Chinese agency downgrades US credit rating

About Albert N. Milliron 6989 Articles
Albert Milliron is the founder of Politisite. Milliron has been credentialed by most major news networks for Presidential debates and major Political Parties for political event coverage. Albert maintains relationships with the White House and State Department to provide direct reporting from the Administration’s Press team. Albert is the former Public Relations Chairman of the Columbia County Republican Party in Georgia. He is a former Delegate. Milliron is a veteran of the US Army Medical Department and worked for Department of Veterans Affairs, Department of Psychiatry.

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