S&P says Asia-Pacific sovereign ratings safe | business | Hindustan Times
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S&P says Asia-Pacific sovereign ratings safe

business Updated: Aug 08, 2011 12:35 IST

AFP
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Standard & Poor's on Monday said its US credit rating downgrade will have no immediate impact on Asia-Pacific sovereign ratings, but could have negative consequences longer-term.

The agency on Friday cut the credit rating for US Treasuries for the first time ever from AAA to AA+, pointing to deep divisions in Washington over its long-term fiscal standing.

The decision by S&P sparked scathing criticism from US treasury secretary Timothy Geithner, who called it a "terrible judgement".

But S&P said in a statement issued in Australia: "There is no immediate impact on Asia-Pacific sovereign ratings resulting from the lowering of the issuer credit ratings on the US to AA+ on Friday.

"However, the US rating change, together with the weakening sovereign creditworthiness in Europe, does point to an increasingly uncertain and challenging environment ahead.

"Uncertainties in the global financial market and weakened prospects in the developed economies have further undermined confidence.

"The potential longer-term consequences of a weaker financing environment, slower growth, and higher risk aversion are negative factors for Asia-Pacific sovereign ratings."