Could US Government Lose It “AAA” Rating?

April 15, 2008 by Douglas A. McIntyre

S&P could pull the "AAA" credit rating of the US government. Hard to imagine.

If the US has to bail out Fannie Mae (NYSE: FNM) and Freddie (NYSE: FRE), the consequences could be awful.

According to The Wall Street Journal "While this credit crunch has hurt financial markets, S&P notes that it hasn’t threatened the standing of the nation’s credit quality upon which U.S. Treasurys and debt priced off this government debt depend. But should a protracted recession cause Fannie and Freddie to buckle, the U.S. rating would be in danger."

Anyone can be downgraded.

Douglas A. McIntyre

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