Standard & Poor's Downgrades US Debt

Shift in US Budget Debate Is Positive Despite Uncertainty over Outcome Last Wednesday, President Obama outlined a revised proposal only two months after his administration presented its 2012 budget, a very unusual move that followed an alternative Republican budget presented by US Rep. Paul Ryan of Wisconsin the previous week and passed by the House of Representatives last Friday. While the politics surrounding an agreement remain contentious, we believe these two proposals together represent a credit positive shift in the US fiscal debate, as both would result in lower deficits and debt levels than projected in the February budget.. Moodys AAA/A-1+’ Rating On United States of America Affirmed; Outlook Revised To Negative We have affirmed our ‘AAA/A-1+’ sovereign credit ratings on the United States of America. The economy of the U.S. is flexible and highly diversified, the country’s effective monetary policies have supported output growth while containing inflationary pressures, and a consistent global preference for the U.S. dollar over all other currencies gives the country unique external liquidity. Standard & Poor's