Moody's Investors Service and Standard & Poor's are both considering downgrading their ratings on U.S. debt because of rising interest-to-revenue ratios, the nation's jobless recovery, and rising Social Security and health care costs, among other factors, The Wall Street Journal reported Thursday.
Standard & Poor's is revamping its credit rating methodology for banks and financial institutions in a way that may cause about 40% of rated banks to get a downgrade, The Wall Street Journal reported Tuesday.
Standard & Poor's lowered the credit ratings for AT&T and Verizon Communications on Monday, saying that increased competition will make it harder for the two largest phone companies to pay down their long-term debt.
Portugal's credit rating may be on its way down. Standard & Poor's warned Tuesday that a downgrade may be coming based on the government's failure to create policies that will boost productivity and cut the country's deficit.
While defending the rating agencies last week before the Financial Crisis Inquiry Commission, Warren Buffett also admitted, "I don't need them." It seems that more and more, the financial markets are coming to agree with Buffett's stance on ratings.
