In this way, the degradation would not be unusual and its consequences could be limited to the world’s largest economy, since its debt is now the most coveted in the markets.
– AAA What is it?
AAA or triple A is the best known rating agency that can be assigned to assess the ability of a state, community or company to repay its debt.
The three main agencies in the world, S&P Global, Filch and Moody, rate the system’s materiality in letter formats that go from AAA (the best possible grade) to C or D when it is in default.
For example, their evaluations consider the financial health of these players: the rate of the country, the institutions of growth, the debt, the deficit, the expenditure, the income tax … and establish a diagnosis, who are the financial leaders to invest.
Accordingly, in the lower grade, they tend to demand more money at high interest when lending to the state or society, since their debt is considered more risky.
Who has a triple rating?
Only a small number of countries are well-known among the big three agents: Australia, Denmark, Germany, Sweden, Norway, Singapore, Switzerland and Luxembourg.
Others have AAAs in one or two third-party jurisdictions, such as the United States, Canada, and the European Union.
– Who lost the trinity A? –
In Europe, a number of countries, such as France, are deprived of the highest rates by all three major agents in the economic crisis.
Also, after losing the AAA in 2012-2013, France “has not lost its investment” due to its debt, said the founder of the Global Advisory Office, specialized in economic policy of States.
– What are the consequences of losing triple A? –
The loss of triple A is symbolic because of the signal it sends to the market. In practice, if it were to be lowered by one level in the United States, its rating would be very favorable (AA+), so that investors would not be turned away. US debt continues to generate overconfidence and constitute an inevitable investment for global savings.
“The doll is the reserve currency of the world,” Fitch recalled in its conclusions on Wednesday, suggesting that the United States will find buyers for its debt without major problems, although interest rates may rise slightly.
In 2013, this agency already placed the United States under a “negative outlook”, which indicated that it would not downgrade. But not at the borders.
Fitch, which has rated the United States since 1994, and Moody’s, which has done so since 1949, have never downgraded.
But the United States lost its already valuable AAA rating from S&P Global in 2011, to be phased out by Fitch.
Faced with the threat of degradation, the spokeswoman of the White House, Karine Jean-Pierre, considered on Wednesday that the “factors of the crisis” criticized the refusal of conservatives in Congress to vote on the increase of the debt in the United States of America. It is necessary to avoid delay.
