(CH) Chinese rating agency Dagong Global Credit downgrades US sovereign credit rating to "A+" from "AA" citing QE2 program (update) - Chinese press
- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook. Downgrade reflects its deteriorating debt repayment capability and drastic decline of the governments intention of debt repayment.
- "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession....Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government's policy to continuously depreciate the U.S. dollar against the will of creditors...In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse."
- Cut long term US sovereign rating one notch to A+ from AA, with a negative outlook. Downgrade reflects its deteriorating debt repayment capability and drastic decline of the governments intention of debt repayment.
- "The serious defects in the U.S. economy will lead to long-term recession and fundamentally lower the national solvency. The credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession....Analysis shows that the crisis confronting the U.S. cannot be ultimately resolved through currency depreciation. On the contrary, it is likely that an overall crisis might be triggered by the U.S. government's policy to continuously depreciate the U.S. dollar against the will of creditors...In essence, the U.S. government's move to devalue the dollar indicates its solvency is on the brink of collapse."
