S&P begins downgrading credit ratings linked to US
By MARTIN CRUTSINGER – AP Economics Writer
August 8, 2011
WASHINGTON (AP) — Officials at Standard & Poor’s are downgrading the credit ratings of mortgage lenders Fannie Mae and Freddie Mac and other agencies linked to long-term U.S. debt.
The agency says it has also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options.
Thou not mentioned in that piece. S&P said they will likely downgrade the ratings for states, insurance companies, and local governments too.
Published: Monday, 8 Aug 2011
… Officials at S&P said they plan to indicate how local and state governments and insurers will be affected by the rating agency’s downgrade of long-term U.S. debt.
S&P officials told reporters Monday that the agency is looking at key sectors that are linked to the U.S. debt, and will announce "shortly" how those ratings might be affected.
The officials did not name any specific governments or insurance groups. But they said triple-A-rated insurance groups and state and local governments affected by possible consolidation of programs in Washington would likely be reviewed…
The S&P earlier said that it thinks its sovereign ratings are robust and ahead of its rivals, and that it plans to continue that track record. It also noted that printing money doesn’t deliver a triple-A rating.