BEIJING, Nov. 12 (UPI) -- The chairman of China's Dagong Global Credit Rating said it was likely the agency would downgrade the U.S. credit rating a third time.
Dagong was the first agency to downgrade the United States, lowering its rating from AA to A+ in 2010 and dropping it to A in August, The Guardian reported Saturday.
When asked in a television interview if another downgrade was on the horizon for the United States, Chairman Guan Jianzhong said, "I think so."
The United States cannot dig its way out of debt through monetary policy, he said. Instead, it has to work on debt reduction.
"The measures available to (the United States) … cannot be effective so they have another way out which is to depreciate the U.S. dollar, to print more money. And that will also make it a lot worse."
"This has affected their credit and it is negatively affecting their credit prospects -- so that their overall ability to pay back their debt will continue to go down," he said.
Soon after its August downgrade, U.S. agency Standards & Poor's became the first ever Western credit rating agency to downgrade the United States, dropping its assessment from AAA to AA+.
S&P's downgrade triggered an immediate reaction among investors, as equity markets became erratic. For the first time in its 112-year history, the Dow Jones industrial average moved up and down at least 400 points for four consecutive trading sessions.
