NEW YORK, Sept 14 Ratings agency Egan-Jones on
Friday downgraded the U.S. country rating to AA-minus from AA,
citing the Federal Reserve's latest stimulus program to boost
the sluggish economy.
The Fed on Thursday said it would pump $40 billion into the
U.S. economy each month until it saw a sustained upturn in the
weak jobs market.
"(The) Fed's QE3 will stoke the stock market and commodity
prices but in our opinion (it) will hurt the U.S. economy and,
by extension, credit quality," Egan-Jones said in a statement
about the latest quantitative easing program.
"The increased cost of commodities will pressure
profitability of businesses, and increase the costs of consumers
thereby reducing consumer purchasing power."
Moody's Investors Service currently rates the United States
Aaa, Fitch rates the country AAA, and Standard & Poor's rates
the country AA-plus. All three of those ratings have a negative