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S&P lowers its outlook for the nation’s long-term debt Monday.

Happy Tax Day! We can add this beauty to the U.S.’s economic debacle. (Stocks obviously did not like this)

-DF

NEW YORK (CNNMoney) — Standard & Poor’s lowered its outlook for the nation’s long-term debt Monday, even as it reaffirmed the agency’s top-tier rating for the U.S. economy.

S&P maintained its ‘AAA/A-1+’ credit rating on U.S. sovereign debt, saying the nation’s “highly diversified” economy and “effective monetary policies” have helped support growth.

But the ratings agency lowered its outlook for America’s long-term credit rating to “negative” from “stable,” based on the uncertain political debate around the nation’s fiscal problems.

The outlook means that there is a one-in-three likelihood that it could lower the long-term rating on the United States within two years, S&P said.

“The outlook reflects our view of the increased risk that the political negotiations over when and how to address both the medium and long-term fiscal challenges will persist until at least after national elections in 2012,” said S&P credit analyst Nikola Swann.

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Written by David Frederick

April 18, 2011 at 12:45 PM

Posted in Economics

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