David Beers will be one of the Standard and Poors executives deciding whether the United States will lose its AAA rating at the end of the month — and he has no qualms about it.”If you want your ratings to do what they are designed to do, you have to call these things as you see them,” Mr. Beers told The Wall Street Journal Thursday on his way to briefing House Republicans on the consequences of a downgrade. “And that’s what we are committed to doing.”
Beers, the head of S&P’s sovereign debt division — has downgraded his fair share of nations over his 21-year tenure at the ratings agency.
A committee of S&P analysts will consider whether to strip U.S. treasuries of their coveted rating, analysing whatever agreement Congress and President Barack Obama reach to raise the debt ceiling and lower the deficit.
The agency made waves last week for its stark warning that there was a 50 per cent chance it will strip the U.S. of its AAA rating, demanding a significant, long-term deficit reduction package be adopted.
Administration officials and congressional leaders have sought to reassure Beers and other S&P executives that they will act to raise the debt limit and deal with the growing debt.
Asked by the WSJ about the substance of his conversations with U.S. government officials, Beers would only say he hadn’t “yet encountered that many governments that welcome us staking out a scenario where their rating might be lowered.”
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