Tuesday, November 09, 2010

Humor: China Rating Agency downgrades U.S.

by Bill McBride on 11/09/2010 09:58:00 PM

From the Financial Times Alphaville: US downgraded on QE2 ... by Chinese rating agency (ht Andrew)

Dagong Global Credit Rating Co. — the Chinese rating agency which hit headlines earlier this year for its AA-view on the United States — is back. With a US downgrade.

From the just-published, 10-page report:
Dagong has downgraded the local and foreign currency long term sovereign credit rating of the United States of America (hereinafter referred to as “United States” ) from “AA” to “A+“, which reflects its deteriorating debt repayment capability and drastic decline of the government’s intention of debt repayment.

The serious defects in the United States economic development and management model will lead to the long-term recession of its national economy, fundamentally lowering the national solvency.
I thought this was from The Onion. The report concludes:
[G]iven the current situation, the United States may face much unpredictable risks in solvency in the coming one to two years.
Uh, right. At least someone in China has a sense of humor ...