S&P begins downgrading credit ratings linked to US - KCBD NewsChannel 11 Lubbock

S&P begins downgrading credit ratings linked to US

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) - Officials at Standard & Poor's are downgrading the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S. debt.

The agency says it has also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major  clearinghouses, which are used to execute trades of stocks, bonds and options.

All the downgrades were from AAA to AA+. S&P says the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term U.S. debt.

Officials at Standard & Poor's say they will also indicate shortly how local and state  governments will be affected by their decision on Friday to lower the long-term U.S. debt from AAA to AA+.
      
Copyright 2011 by The Associated Press.  All Rights Reserved.

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