Baidu Planet: S&P Was Not First Rating Agency to Downgrade USA (Video) *China's Dagong Global Credit never rated America at AAA*

● Baidu Planet ●

Dagong Global Credit initiated coverage of USA sovereign credit in July 2010 with a AA credit rating
Dagong now has the USA at A+ effective November 9, 2010

Some USA Sovereign Credit Ratings at a Glance
Moody's Investor Service: AAA
Fitch Ratings: AAA
Standard & Poor's: AA+
Egan-Jones: AA+
Dagong Global Credit: A+
Weiss Ratings: C- equivalent to BBB-

USA Sovereign Credit Rating Overview: Major Credit Rating Agencies Standard and Poor's lowered the credit rating of the United States of America from AAA to AA+, with a long-term negative outlook, on August 5, 2011. The negative outlook indicates the rating could be lowered again within the next two years. Fitch Ratings continues the USA at AAA, with a stable outlook, but this is currently under review with a report due by the end of August. Moody's Investor Service reaffirmed the USA at AAA, but with a negative outlook, on August 2, 2011. The USA has never before had less than a AAA credit rating by the three major credit rating agencies. However, other credit rating agencies had already downgraded the USA.

USA Sovereign Credit Rating Overview: Other Credit Rating Agencies Dagong Global Credit of China initiated coverage of sovereign credit in July 2010 and the rating of the United States of America was AA. Dagong downgraded the USA to A+/negative in November 9, 2010 then reiterated the USA negative outlook on July 14, 2011, which was repeated on August 2, 2011. Weiss Ratings is the toughest, initiating coverage of the USA on April 28, 2011 with a credit rating of C (Fair), which is equivalent to BBB used by the major credit rating agencies The USA was then downgraded further to C- on July 15, 2011, which is equivalent to BBB-. Weiss Ratings challenged the three major credit rating agencies, Standard and Poor's, Fitch Ratings, and Moody's Investor Service, on May 10, 2010 "to downgrade the long-term debt of the United States before it's too late" to AA+. The challenge was reissued on August 8, 2011 to Fitch and Moody's. Egan-Jones of the United States downgraded the United States from AAA to AA+ on July 18, 2011.

Dagong Statement of USA Negative Outlook Dagong Global Credit continues the sovereign credit rating of the United States of America on negative outlook, reiterated on August 2, 2011. Dagong stated:
● Dagong decides to downgrade the local and foreign currency rating of the U.S. from A+ to A with a negative outlook.
● The defects in the political structure exposed in the bipartisan struggle indicate that the U.S. government has difficulty in ultimately resolving the sovereign debt crisis; the interest and safety of the U.S. creditors lack a guarantee from the political and economic systems.

● By raising the debt limit the U.S. temporarily prevents the government from debt default, but it does not improve national solvency; rather the heavier debt burden on the government will cause the U.S. sovereign debt crisis to further deepen.
● The pace of the U.S. deficit cut is far lower than that of new debt growth and the fiscal policy of revenues falling short of expenditures will surely keep pushing the U.S. government debt to a higher level.

● The U.S. Congress has not come up with a positive resolution on how to address the problem of insufficient driving forces for national economic growth, which indicates that the U.S. government cannot resolve the fundamental influence of low economic growth, high deficit, and increasingly higher debt to the debt service capability through increasing real wealth creation, with the declining national solvency irreversible.

● The radical deterioration in the state management capability, economic strength, and fiscal strength that affect the government debt service capability and willingness revealed in the struggle over the debt ceiling determines the outlook of the sovereign credit rating of the U.S. to be negative.

Chinese Agency Downgrades US Credit Rating China's Dagong Global Credit Rating Company has downgraded the US from "A+" to "A" status. Dagong based the decision on a lack of confidence in the US government throughout the recent debt ceiling debate.