S&P Says 50-50 Chance Of U.S. downgrade

It sounds like the US is going to get a downgrade even if we get a deficit reduction plan passed. It really depends on how substantial the plan is. It will likely not be large enough to really change anything, so I wouldn’t be surprised if the US credit rating was downgraded soon after.

By Emily Flitter and Daniel Bases

NEW YORK (Reuters) – Standard & Poor’s reiterated on Thursday it sees a real risk that future U.S. government deficits may meaningfully miss discussed targets and that there is a 50-50 chance the U.S. AAA credit rating could be cut within three months, perhaps as soon as August.