THE REAL REASON FOR TAKEN BIN LADEN OFF ICE! US Debt Rating Should Be 'C': Independent Agency

There have been increasing concerns about the fate of United States' prized triple-A sovereign debt rating. While Standard and Poor's recently downgraded its U.S. debt outlook to negative from stable, implying that a ratings cut could happen in two years, one independent ratings agency has given the U.S. sovereign rating a "C".



"A 'C' is equivalent to approximately a triple-B on the S&P, Moody's and Fitch scales. It's two notches above junk and one notch above the equivalent of a single A," Martin Weiss, President of Weiss Ratings, told CNBC Tuesday.

Weiss was quick to add that while the rating seems weak, the debt situation is not in a danger zone that would trigger panic, noting that there was still broad market acceptance for Treasurys.

The grade reflects the U.S. massive debt burden, low international reserves and the volatility in the American economy, he said.

The U.S. government debt is fast approaching the $14.3 trillion ceiling, with the debt-to-GDP ratio close to 100 percent. And a downgrade of U.S. Treasurys - one of the most widely held assets - could theoretically raise borrowing costs and in a worst case scenario, trigger a default on the government's debt obligations.

America's rating was ranked 33rd out of 47 nations, according to Weiss, which began tracking sovereign debt last year. France and Japan also got a "C" rating, while Only China and Thailand received an "A" rating.

Weiss Ratings based its score purely on statistics, and does not take into account qualitative factors such as political stability.

10 Comments TotalCOMMENTSOutside_Observer | May 3, 2011 01:04 AM ET

Even if France and US appear on the surface the same (i.e. rated "C") - there are VERY GOOD global and political reasons, why people all over the World trust Treasuries, and less so French Euro denominated currencies.

US can afford this - while France and Japan maybe cannot.
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ital | May 3, 2011 01:05 AM ET

Just another conman trying to crash the market for the press and hedge fund scum. Ignore it and just buy stocks. Why let a big mouth screw your investments up?
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Apocalypse_Now | May 3, 2011 01:19 AM ET

@ital

Yoy really, really, don't get it.

This Market will crash itself - the rest of the world is trying to keep it alive!!! Nobody, needs to try and crash this Market - it's as rotten and anemic as they come. An inch away from the cliff.

Only through the generosity of the Fed does this Market stay on this side of the worst Depression your little mind can imagine.

P.S. A "C" is closer to the truth.


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Zootopia3000 | May 3, 2011 03:36 AM ET

So, probably one notch better on the Weiss Rating scale than is being stated here, given their past track record. A track record that's historically been better than the other ratings agencies mentioned here.
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BringbackGlass-Steagall | May 3, 2011 05:47 AM ET

@ital

Poor ital. Somebody else raining on one of your imaginary parades? We used to have a saying in the neighborhood I grew up in near Philadelphia – you’re a shame to humanity. It surely fits you like a glove – not OJ’s. This market has been rigged with ENRON-esque accounting tricks (mark to market, now market to fantasy) Fed printing, and an overactive PPT. It is overbought, overblown, and built on a foundation of BS. It is not a matter of IF, it is merely a matter of when this market rolls over and barfs all over itself.

I know a sharp kid that just had his second interview with a company that will be independently rating MBSs, so potential investors get the real story about their value. There are more and more of these agencies popping up every day. Nobody trusts the WS Bansksters or their enablers any longer. When this thing finally implodes you will be one of the first people whining and crying about not being told that this would happen. Sleep tight ital, the world is wonderful; the market will go up forever because the clowns, and shills, on CNBC say it will!

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Professor715 | May 3, 2011 08:23 AM ET

Now here's an authoritative source, Weiss Ratings, a real household name. Phuckin morons. If the US credit rating is so bad, why are the rates on US govt. debt the lowest in the world?
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DavidKramer | May 3, 2011 09:34 AM ET

Hey, does Soros have any connection to this firm?

Watch for the inevitable shorting of the dollar when he makes his move.
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clickron | May 3, 2011 09:36 AM ET

S&P has lost all integrity, and has been compromised by globalist bankers with an agenda. Seek other ratings services.
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Goatfizzle | May 3, 2011 09:43 AM ET

This is obscene. SO many countries owe us billions and billions of dollars, INCLUDING the countries calling for us to receive the lower rating. How about the entire world pays us back all the loans, all the war reparation debt, etc., then we can talk about a "C" rating.
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No2RepublicanConJob | May 3, 2011 09:45 AM ET

The HUGE Deficits in US can quickly be replaced with HUGE Surpluses by taking the steps below. And to instantly see this, just look at countries that are already taking them, such as China, Germany, etc., who have HUGE Surpluses to lil Deficits.

1- Tax the Rich and Big corporations much more - 55% in Germany for someone making over $500K vs 36% in US,

2- Do not engage in unnecessary Wars 10,000K from your border - ZERO Wars China engaged in vs 3 Wars for US at the cost of $3-Trillions to date,

3- Do not have a Gargantuan Military budget - ZERO Chinese Military bases outside China vs US bases in an astonishing 120+ countries,

4- Have Universal Nationalized health care (aka NHS) - for in countries that have NHS, which is ALL European countries, in fact ALL Developed nations, health care is taking about 9% of GDP, whereas in US with no NHS, health care is taking a DEFICIT BUSTING 18% of GDP.

etc.

And Republicans oppose ALL of these Steps. Just think what real ENEMY of the Nation they are.

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