Standard and Poor’s says the nation’s credit rating will be unaffected by super committee’s failure to cut $1.2 trillion from the federal deficit, citing the $1.2 trillion in mandatory cuts that will take place anyway.
S&P cut the rating from AAA to AA+ in August after Congress and President Barack Obama brought the country to the brink of default.
The affirmation offers a warning against reducing the amount of mandatory spending cuts as part of the sequester: “we expect the caps on discretionary spending as laid out in the Budget Control Act of 2011 to remain in force.”
Any easing the spending cuts would result in “downward pressure on the ratings,” the ratings agency warned in a statement.
UPDATE 5:52: Moody’s affirms U.S. AAA rating, says panel decision “not decisive” for US rating.
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