US credit rating downgraded, again

A small credit ratings agency downgraded the United States' credit rating for a second time, arguing the country was no closer to solving its runaway debt problem. In a move that could foreshadow decisions from larger agencies, Egan-Jones downgraded the US to AA from AA+. The company on Thursday cited "the lack of any tangible progress on addressing the problems and the continued rise in debt to GDP." "For the first time since WWII, US debt exceeds 100 percent," analysts said, predicting that would rise to 106 percent by the end of the year, calling that an "inflection point." Egan-Jones -- which is much smaller than its rivals -- scrapped the United States' top-level AAA rating in July, one month before Standard & Poor's. Part of the reason cited then and now was the continued political gridlock in Washington. "We'd like to see some progress towards reducing the fiscal deficit in the next six to twelve months," said managing director Sean Egan.