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Wilbur Ross and Mohamed El-Erian Talk About S&P's Cut of U.S. Credit Outlook

April 20, 2011


Wilbur Ross, chief executive officer of WL Ross & Co., talks about the decision by Standard & Poor's to cut the outlook for the AAA credit rating of the U.S. to "negative.”

Ross called S&P’s move “alarmist” and not soundly logical.

Ross is of the opinion that any claim that U.S. could default on its debt cannot be taken seriously. He noticed that the S&P raised the credit rating of most states in the U.S. not too long ago.

Ross claimed that if a downgrade of US’s credit rating take hold, then none of the companies in the company deserves an “AAA” rating because in theory, the country can continue to raise tax on the companies to improve its own rating.

(Source: Bloomberg)

Mohamed El-Erian, chief executive officer at Pacific Investment Management Co., talks about Standard & Poor's change in its outlook for the AAA credit rating of the U.S. to "negative" and the prospects for U.S. debt reduction.

Rating: 3.8/5 (4 votes)


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