China Downgrades US Credit Rating from A- To BBB+, Warns US Insolvency Would “Detonate Next Crisis.
In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasury’s, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base of the government’s debt repayment. In a statement on Tuesday, Dagong warned that the United States’ increasing reliance on debt to drive development would erode its solvency.
Source : Wall street
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