Dagong Global Credit Rating Co. Ltd., the only wholly Chinese-owed rating agency, cut its rating on U.S. debt to A from AA, citing the Federal Reserve’s move last week to initiate another round of asset buying, worth $600 billion. It also placed the U.S. sovereign credit rating on negative watch.
G-20 set to gather amid controversyAhead of Thursday's G-20 meeting, controversy has grown over the Fed's recent stimulus moves, which China and other nations have protested.
“The new round of quantitative easing monetary policy adopted by the Federal Reserve has brought about an obvious trend of depreciation of the U.S. dollar and the continuation and deepening of credit crisis in the U.S.,” Dagong said.
“Such a move entirely encroaches on the interests of the creditors, indicating the decline of the U.S. government’s intention of debt repayment,” the agency said.