S&P sounds alarm on US debt
By Robin Harding and James Politi in Washington and Michael Mackenzie in New York
Published: April 18 2011 15:19 | Last updated: April 18 2011 22:48
Standard & Poor’s issued a stark warning to Washington on Monday, cutting its outlook on US sovereign debt for the first time and throwing more fuel on the raging debate over America’s swollen deficits.
The agency kept America’s credit rating at triple A but for the first time since it started rating US debt 70 years ago, cut its outlook from “stable” to “negative”. A negative outlook means there is a one-third chance of a downgrade in the next two years.