Dagong puts the US on Negative Watch List
Updated: 2012-12-25 20:25
(chinadaily.com.cn)
|
|||||||||||
Dagong Global Credit Rating Co on Tuesday put the United States on its Negative Watch List, citing the pending fiscal cliff issue and expanding debt scale of the country.
During the debt ceiling crisis in August 2011, Dagong took the lead in downgrading the local and foreign currency sovereign credit ratings of the US from A+ to A, both with a negative outlook.
"We have decided to put the US on Negative Watch List because political conflict has again pushed the credit rating of the federal government to the cliff," Dagong said in a statement.
The government lacks the willingness and measures to make debt repayments, it said, and the easing measures adopted in the last two years have led to long-term depreciation of existing debt, and losses to its creditors.
The debt burden for the US federal government has risen by 11.7 percent in 2012, far more than the GDP growth during the same period of 3.4 percent and fiscal revenue of 6.2 percent. The debt balance will rise to 104.8 percent of its GDP by the end of this year.
Dagong said the US economy may fall into a recession in 2013 and will remain sluggish in the long term, further dampening its debt repayment ability.
Raising its debt scale and monetizing the debt have become long-term policies for the US, and the country's debt repayment ability declined, Dagong said.
Related Stories
Dagong maintains China's AA+ credit rating 2012-12-19 09:40
Dagong maintains Hong Kong's AAA credit rating 2012-11-30 09:47
US QE3 signals deepening credit crisis: Dagong 2012-09-28 10:34
Dagong maintains Turkey's sovereign credit rating 2012-09-27 14:30
Dagong puts sovereign credit rating of Kuwait at AA 2012-05-30 15:30
Dagong maintains sovereign credit rating of Madagascar 2012-05-28 16:28
Today's Top News
President Xi confident in recovery from quake
H7N9 update: 104 cases, 21 deaths
Telecom workers restore links
Coal mine blast kills 18 in Jilin
Intl scholarship puts China on the map
More bird flu patients discharged
Gold loses sheen, but still a safe bet
US 'turns blind eye to human rights'
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
All-out efforts to save lives |
Liaoning: China's oceangoing giant |
Poultry industry under pressure |
'Spring' in the air for NGOs? |
Boy set to drive Chinese golf |
Latest technology gets people talking |