Debt market strips U.S. of triple-A rating

Posted on October 14, 2010

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The United States has lost its gold-plated triple-A rating — in the eyes of credit traders, at least.U.S. sovereign debt was the third-worst performer in a closely watched derivatives market during the third quarter, CMA said Tuesday in its quarterly review of global sovereign credit risk.

That puts the United States’ third-quarter performance behind only two other nations, both of which are struggling with the early stages of sovereign debt crises: Ireland, whose CDS prices rocketed 72% to a record amid growing questions about the costs of a massive bank bailout, and Portugal, whose costs jumped 30%.

via Debt market strips U.S. of triple-A rating – Street Sweep: Fortune’s Wall Street Blog.

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