Tags: S&P | Chambers

S&P's Chambers: 1-in-3 Chance of Further US Downgrade

Sunday, 07 Aug 2011 10:16 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON — Standard & Poor's Managing Director John Chambers said Sunday there is a 1-in-3 chance of a further U.S. credit rating downgrade over the next six months to two years.

"We have a negative outlook . . . from six months to 24 months," he said on ABC's "This Week."

"And if the fiscal position of the United States deteriorates further or if the political gridlock becomes more entrenched, then that could lead to a downgrade. The outlook indicates at least a one in three chance of a downgrade over that period."

Chambers said that it would take some time for the United States to recover its AAA rating.

"It would take a stabilization of the debt as a share of the economy and eventual decline. And it would take, I think, more ability to reach consensus in Washington than what we're observing now," he said.

 Meanwhile, former Federal Reserve Chairman Alan Greenspan said he expects the stock market slide to continue in the wake of a decision by S&P to downgrade the U.S. credit rating.

Appearing Sunday on NBC's "Meet the Press," Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action.

But Greenspan also said he doesn't see any risk in investing in the United States and says that S&P's downgrade won't change that.

The former Fed chairman said the downgrade "hit a nerve" and is damaging to the psyche of the country. But he said he can't foresee a scenario in which the U.S. will default on its debts.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Journalist Says Body Was 'At War' With Ebola

Saturday, 25 Oct 2014 15:43 PM

Ashoka Mukpo knew he really was in trouble when he saw the people treating him in full suits and hoods.The American vide . . .

Returning Ebola Health Workers to Get Paid Leave at Hospital

Saturday, 25 Oct 2014 15:14 PM

Employees returning from the West African countries hit hardest by Ebola will get a 21-day paid furlough from New York-P . . .

Newt Gingrich: Houston Pastor Subpoenas Part of a 'Radical Agenda'

Saturday, 25 Oct 2014 13:07 PM

Houston Mayor Annise Parker's decision to issue subpoenas for sermons from the city's Christian pastors was for much la . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved