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Chinese agency downgrades U.S. credit rating to same level as Russia

China’s leading credit rating agency Wednesday downgraded U.S. sovereign debt after putting it on negative watch last month. The Dagong Global Credit Rating Company, which lowered the United States to A+ last November after the U.S. Federal Reservedecided to continue loosening its monetary policy, announced a further downgrade to A, on par with Russia and South Africa, saying the deal to lift the debt ceiling won’t solve underlying US debt problems or improve its debt-paying ability over the long run.

Ironically, Dagong’s move could hurt not just the United States but also China, the largest foreign owner of U.S. debt with holdings worth almost $1.2 trillion. (3 August 2011, Wednesday)