The Credit Downgrade

The Credit Downgrade

What is it- S & P - a credit rating agency- has said we are a higher risk
than the triple A rating which was called 'no risk."

Why- We spend more than we make and our recent 'fiscal consolidation plan
falls short' of really solving long term debt and repayment. The 'debt
ceiling plan isn't cutting enough planned spending.

What does it mean for the US- practically it will mean what it would mean at
your house if your credit rating went down: higher interest rates = more
expensive to borrow money.

What does it mean for me- higher interest rates across the board, on credit
cards, mortgages, etc.

What happens next? - S & P will re-evaluate in 6- 24 months for a potential
ADDITIONAL downgrade. How do we turn this around?- Cut our expenses.become
more efficient. In an interview, an S & P managing Director gave the
chances for ANOTHER downgrade at a 1 in 3 chance. If the Deficit Committees
recommendations are accepted S & P says we may stabilize at the New Present
AA+ rating.

Marion R. Syversen, MBA - President

NorumbegaFinancial

207.862.2952

Marion@NorumbegaFinancial.com

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