Saturday, 06 August 2011 18:04
On August 5, Standard & Poor's announced that it has lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating. The outlook on the long-term rating is negative. Standard & Poor's also removed the short- and long-term ratings from CreditWatch negative.According to its website, a Standard & Poor's rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). CreditWatch highlights Standard & Poor's opinion regarding the potential direction of a short-term or long-term rating.
Standard & Poor's has indicated it will release more information on August 8 "concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance and structured finance sectors."
Separately, on August 2 Moody's confirmed its 'Aaa' bond rating with a negative outlook for the U.S. government.
More information about ratings is available at standardandpoors.com, moodys.com and fitchratings.com.
While the immediate effects of these actions are currently unknown, we will continue to monitor the situation and the markets. To view updates and commentary as they are available, please visit raymondjames.com.
In the meantime, please feel free to contact me with any questions or concerns.
Sincerely,
- Tim
Timothy J. McNeely CFP® CIMA®Financial Advisor, RJFS
McNeely Financial Strategies LLC - An Independent Firm | www.mcneelyfs.com
18919 Nordhoff St., Suite 6C | Northridge, CA 91324
818-534-4949 | Toll Free 888-300-8003 | Fax 818-534-4959
