Week of July 31, 2011 thru August 6, 2011

Insight: U.S. Downgrade Provokes Broader G7 Concerns

By Steven K. Beckner

(MNI) - As Group of Seven officials confer over the implications of
the downgrade of U.S. debt, much of the focus is on the implications for
Europe, not just the United States, Market News International is told.

Although by no means unexpected, Standard & Poor's Friday night
action to strip the U.S. government of its triple-A rating is creating
shockwaves around the world this weekend in dread anticipation of the
reopening of financial markets in Asia Sunday night.

Not only has the premier ratings agency downgraded U.S. government

Analysis: How Stinging is S&P's Rebuke of the US?

By Denny Gulino

WASHINGTON (MNI) - Washington's politicians, opinion leaders,
business lobbyists and ordinary citizens differed in their reaction to
S&P's unprecedented downgrade of U.S. securities, with no consensus
whether it was outrageous and misguided or a well-timed wake-up call.

Other countries chimed in as well, with some in support and the
U.S.'s biggest creditor, China, blasting what it said is America's short
sightedness.

The U.S. Treasury's own immediate reaction was to attack the
methodology, saying S&P used the wrong baseline assumption and had

Political Risk At Heart Of of S&P Downgrade Of United States

--S&P Analyst: Not Expecting Fiscal Consolidatn Beyond Current Agreement

By Brai Odion-Esene

WASHINGTON (MNI) - The inability of U.S. lawmakers to agree on an
optimal approach to deficit reduction, and belief that the state of
affairs is unlikely to change, is the main reason behind the loss of the
nation's prized 'AAA' credit rating, not the size of its debt load,
analysts at Standard & Poor's said Saturday.

While the starting point of the U.S. debt burden is indeed high,
S&P senior analyst David Beers told reporters during a conference call

White House Text: Must Do Better To Tackle Fisc,Econ Challenges

WASHINGTON (MNI) - Following the decision by Standard & Poor's to
lower the U.S. credit rating to 'AA+' from 'AAA' the White House
released the following statement Saturday:

The President believes it is important that our elected leaders
come together to strengthen our economy and put our nation on a stronger
fiscal footing.

The bipartisan compromise on deficit reduction was an important
step in the right direction. Yet, the path to getting there took too
long and was at times too divisive. We must do better to make clear our

UPDATE:S&P Takes Away US AAA Rating; Another Downgrade Possib

--Retransmitting Updated Story Headlined 20:14 ET Fri;S&P Response
--Downgrades US Sovereign Rating a Notch to AA+, Outlook Negative
--Administration Says S&P Had $2 Trillion Flaw; Ignored Progress

By Denny Gulino, Brai Odion-Esene and Alyce Andres-Frantz

WASHINGTON (MNI) - Standard and Poor's late Friday downgraded the
70-year-old credit rating of Treasury securities one notch and
threatened to do it again if there is insufficient progress in curbing
the nation's debt load.

The gold-plated AAA rating went to AA+ and the outlook was deemed

S&P: Treasury Critisism of Downgrade Methodology Not Relevant

WASHINGTON (MNI) - Standard & Poor's late Friday said the U.S.
Treasury's criticism of its methodology in determining the downgrade of
U.S. sovereign debt -- the $2 trillion miscalculation of discretionary
spending -- is not valid and the amount was not relevant to its
decision.

Shortly after S&P delivered its decision the Treasury responded
with a statement: "A judgment flawed by a $2 trillion error speaks for
itself."

S&P said its downgrade was not based on its admitted $2 trillion/10
year error, revised in its report, and besides, its downgrade horizon is

China Xinhua Attacks U.S. 'Debt Addiction,' Demands Action

BEIJING (MNI) - China on Saturday attacked the U.S. "addiction to
debts" following Standard & Poor's downgrading of the U.S. government
credit rating, warning the U.S couldn't always live on borrowing from
surplus countries.

S&P Takes Away US AAA Rating and Says Another Downgrade Poss

--Downgrades US Sovereign Rating a Notch to AA+, Outlook Negative
--Administration Says S&P Had $2 Trillion Flaw; Ignored Progress

By Denny Gulino, Brai Odion-Esene and Alyce Andres-Frantz

WASHINGTON (MNI) - Standard and Poor's late Friday downgraded the
70-year-old credit rating of Treasury securities one notch and
threatened to do it again if there is insufficient progress in curbing
the nation's debt load.

The gold-plated AAA rating went to AA+ and the outlook deemed
negative by S&P, the most followed of the international ratings
agencies.

S&P Text: US Downgraded To 'AA+' From 'AAA'; Outlk Negative -1

WASHINGTON (MNI) - The United States finally lost its prized 'AAA'
rating Friday, with rating agency Standard & Poor's downgrading its
credit to 'AA+' with a negative outlook.

S&P Text: US Downgraded To 'AA+' From 'AAA'; Outlk Negative -2

WASHINGTON (MNI) - The United States finally lost its prized 'AAA'
rating Friday, with rating agency Standard & Poor's downgrading its
credit to 'AA+' with a negative outlook.