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**posimoka** · 05-20-2011, 12:24 AM

TPM: http://tpmdc.talkingpointsmemo.com/2....php?ref=fpblg

Republicans are now openly flirting with the theory that allowing the United States to default briefly on its payment obligations won't be such a bad thing -- and may even be necessary to extract concessions on entitlement spending in exchange for raising the debt limit.

But two of the biggest ratings agencies say they could downgrade the United States' triple-A credit if the government misses even a single debt-service payment.

"A sovereign's failure to service its debt as payments come due is a default according to S&P's sovereign rating criteria," writes John Piecuch, spokesman for Standard & Poors, one of the "Big Three" credit ratings agencies, in an email to me. "In that case, the rating would be lowered to "SD" (Selective Default)."

05-20-2011, 12:24 AM	#1
posimoka Join Date Oct 2005 Posts 423 Senior Member	Moody’s, S&P Warn U.S. Risks AAA Credit Rating If It Defaults On Debt — Even Briefly TPM: http://tpmdc.talkingpointsmemo.com/2....php?ref=fpblg Republicans are now openly flirting with the theory that allowing the United States to default briefly on its payment obligations won't be such a bad thing -- and may even be necessary to extract concessions on entitlement spending in exchange for raising the debt limit. But two of the biggest ratings agencies say they could downgrade the United States' triple-A credit if the government misses even a single debt-service payment. "A sovereign's failure to service its debt as payments come due is a default according to S&P's sovereign rating criteria," writes John Piecuch, spokesman for Standard & Poors, one of the "Big Three" credit ratings agencies, in an email to me. "In that case, the rating would be lowered to "SD" (Selective Default)."
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