Monday, July 12, 2010

Chinese Sovereign Credit Report Rates U.S. Below China

    You know you saw this coming so do not look so surprised.  The United States being downgraded, did you think you would live to see the day.  Granted, this is coming from China, but still?

A Chinese rating agency warned on July 12 that developed countries like the United States faced "big problems" after issuing what it called the first sovereign credit risk report by a non-Western agency. The report, launched by Dagong Global Credit Rating Co. Ltd on July 11, rated U.S. sovereign debt as more risky than China's.
"We found the economic fundamentals in the major economies... had big problems given that growth in their economy and fiscal income were negative while their debts were growing rapidly," chairman Guan Jianzhong said.
"Moreover, the factors that could enable them to change the fundamentals are not very evident in the foreseeable future," he said.
The report came as China is seeking more influence over world economic policy.

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