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U.S. loses AAA credit rating

Friday, August 05, 2011 - 00:57

Aug. 5 - Standard and Poor's cuts the U.S. AAA credit rating over concerns about the government's budget deficits and rising debt burden. Paul Chapman reports.

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Wall Street ended its worst week since November 2008 when it closed on Friday....or so it thought. Now Standard & Poor's has axed the top-notch U.S. triple A credit rating. It's an unprecedented reversal of fortune for the world's largest economy. The U.S. now has a long-term rating of double-A-plus. But S&P said in a statement the outlook was negative, a sign that another downgrade could come in the next 12 to 18 months. The downgrade could boost borrowing costs by 100 billion dollars. U.S. Treasury bonds, once viewed as the safest security in the world, are now rated lower than ones issued by countries like Britain, Germany, France or Canada. Paul Chapman, Reuters

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U.S. loses AAA credit rating

Friday, August 05, 2011 - 00:57