U.S. Credit Rating Downgraded for the Second Time in Just Nine Months

In a move that foreshadowed larger credit agencies previous downgrading of the U.S. credit rating, Egan-Jones has again downgraded the U.S. for the second time in nine months, this time from AA+ to AA.

Egan-Jones said that the decision was based on the countries inability to solve its runaway debt problem.

The company 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, U.S. 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, a much smaller company than its rivals, lowered the U.S. credit rating last July, one month before Standard & Poor’s.

Political gridlock in Washington was also given as a reason for the downgrade.

“We’d like to see some progress towards reducing the fiscal deficit in the next six to twelve months,” said managing director Sean Egan.

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