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updated: 8/2/2011 10:06 PM

Chinese agency downgrades US credit rating

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Associated Press

BEIJING -- A little-known Chinese ratings agency has downgraded the rating of the United States from A+ to A. The move is unlikely to affect U.S. borrowing rates but reflects the pessimism Washington's debt battle has generated worldwide.

President Barack Obama signed emergency legislation to boost the debt ceiling ahead of a deadline to avoid an unprecedented national default.

Still, China's Dagong Global Credit Rating Co. said Wednesday that the deal doesn't change the fact that U.S. debt growth has outpaced its economy and fiscal revenue.

Dagong is little-known outside China but hopes to compete with global ratings agencies Moody's, Standard & Poor's and Fitch.

Moody's has said the U.S. will retain its highest bond rating but with a "negative" outlook.

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