US Credit Rating And US Subprime Mortgage Crisis Explained

The US subprime mortgage crisis was one of the first indicators of the late-2000s financial crisis, characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages.

After the 112th United States Congress voted to raise the debt ceiling of the United States federal government, the credit rating agency Standard and Poor’s downgraded the credit rating of the United States federal government, receiving criticism from the United States Treasury, Republican political figures, and many businessmen and economists. Both Fitch Ratings and Moody’s, designated like S&P as certified rating agencies by the SEC, have retained the United States’ AAA rating. Moody’s however has changed its outlook to negative.

 

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