S&P negative outlook “underestimates” U.S. ability on debt control: Treasury Department

Posted on Apr 19, 2011 in AllEconomic News
The U.S. Treasury Department said Monday that the negative outlook of Standard and Poor’s (S&P) on U.S. sovereign debt underestimated the ability of the nation’s leaders to address the difficult fiscal challenges facing the world’s largest economy.

“This morning, S&P affirmed the AAA rating of the United States, but emphasized the importance of timely bipartisan cooperation and action on fiscal reform,” Mary Miller, Assistant Secretary for Financial Markets, said in a statement.

S&P has lowered the long-term outlook of U.S. sovereign debt from “Stable” to “Negative.” It reaffirmed its investment-grade credit ratings on the U.S. short and long-term debt, but said the ratings were at risk in coming years on back of spiking deficit and public debt.

Miller contended that as President Barack Obama said last week, the current fiscal situation was “well within our capacity as a country” and the administration had initiated a bipartisan process to make headway on restoring fiscal responsibility.

via S&P negative outlook “underestimates” U.S. ability on debt control: Treasury Department – People’s Daily Online.