Standard & Poor's changes US outlook to negative
Ratings agency cites growing deficit and debt as rationale behind the change
The US fiscal problems were thrown into sharp relief today as ratings agency Standard & Poor's downgraded its outlook on the superpower from stable to negative. In its explanatory note, S&P cited the US's continuing budget deficit and debt growth, and the failure of its political establishment to produce a long-term solution to both issues. Despite holding onto its AAA rating, risk perceptions increased on the sovereign, with credit default swap (CDS) spreads rising from 42 basis points at 3
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