Friday, April 29, 2011

U.S. gets C credit rating, lower than Mexico: Weiss Ratings Says US Credit Rating Already Near Junk

The U.S. got a sovereign credit rating of C on Thursday, in line with ratings for such smaller economies as Mexico, Estonia and Colombia.

Weiss Ratings, based in Jupiter, Fla., has rated the creditworthiness of financial institutions for several years, but the firm launched sovereign- debt ratings of 47 countries on Thursday. The U.S. rating of C (Fair) ranks it 33rd, Weiss noted in a statement.

A C from Weiss is roughly equivalent to a BBB rating from the big rating agencies like Moody’s Investors Service, Standard & Poor’s and Fitch. That’s about two notches above non-investment grade, or junk, status.

The rating comes just over a week after S&P revised the outlook on its AAA rating for U.S. government debt, cutting it to negative from stable. Read the story here.

”The AAA/Aaa assigned to U.S. sovereign debt by Standard & Poor’s, Moody’s and Fitch is unfair to investors and savers, who are under-compensated for the risks they are taking,” Weiss Ratings President Martin Weiss said in a statement. “An honest rating is also urgently needed to help support the political compromises and collective sacrifices the U.S. must make in order to restore its finances.” (read more)