Aug. 3 (Bloomberg) — Standard & Poor’s will downgrade the U.S. after it enacted a law to reduce federal debt by $2.4 trillion over a decade if the credit-rating company sticks to what it outlined last month, said Pacific Investment Management Co.’s Mohamed El-Erian.
“It’s not clear that this is enough to preclude a downgrade by S&P,” El-Erian, chief executive and co-chief investment officer at the world’s biggest manager of bond funds, said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “We suspect they’re under tremendous pressure not to downgrade, but if they stick to what they told the world on July 14, they will downgrade the U.S.”
Full article provided @: