U.S. Could Lose Another AAA Rating

Uh-oh. There is a good chance that the United States will lose its triple-A credit rating from another rating agency by the end of the year because of concerns over the deficit, according to Bank of America Merrill Lynch. Standard & Poor’s downgraded the U.S. in August, and if Congress fails to agree on a long-term plan to cut the deficit, either Moody’s or Fitch could do the same. Merrill’s North American economist Ethan Harris said, “The credit-rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan to cut the deficit. We expect at least one credit downgrade in late November or early December when the supercommittee crashes.”