Exact(14)
"I think economically, the credit rating decision itself makes no difference at all.
The Treasury said the US credit rating decision was a "complete vindication" for the government's robust approach to cutting the deficit.
The rating decision follows similar action by Standard and Poor's, which cut WA's credit rating from AAA+ in September last year to AA+.
Defending itself against attack by the Treasury, S&P later issued a statement flatly rebuting the criticism, saying it "had no impact on the rating decision".
"We fully support the commission's message that every rating decision must be based only on credit considerations," Mr. Adler said, "and we are committed to maintaining robust procedures to ensure that our internal company policies are followed".
That the S&P announcement should come on the day of a summit adds insult to injury.The rating decision is as convoluted as an EU summit communique (I have placed a copy here).
Similar(46)
"S.&P.'s rating decision-making process is separate, fire-walled, and independent from the rest of our business," the company said in a statement after the downgrade.
Evaluators also used the user feedback to guide their rating decisions under the RETAIN framework.
"I think politicians overestimate the impact of rating decisions and underestimate the impact of their own statements, which often move the markets more".
Last year, the EU introduced rules that require the agencies to spell out how they come to rating decisions, such as a downgrade of Portugal.
Government bond prices pared their losses after the rate decision.
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Justyna Jupowicz-Kozak
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