Standard & Poor’s rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+ with a negative outlook after the markets closed on Friday, August 5, 2011.
Despite S&P’s reasons for the downgrade, many federal agencies, administration leaders, and policymakers have spoken out to ensure confidence in the U.S. economy and the stability of the financial markets.
“No matter what some agency may say, we’ve always been and always will be a AAA country” -President Barack Obama
“[S&P has] shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement.” -Treasury Secretary Geithner
“The US retains its Aaa because of the diversity and size of the US economy, a long record of solid economic growth, and the global role of the dollar and the unmatched access to financing it provides.” -Moody’s Rating Agency
“There is no impact on insurer investments in U.S. government and government-related securities from the actions recently taken by the rating agencies. Risk-based capital and asset valuation reserves are unaffected.” -National Association of Insurance Commissioners (NAIC) President and Iowa Insurance Commissioner Susan E. Voss
To view the full collection of statements, view this week’s Fast Facts here.