S&P to review ratings for gov'ts linked to US debt

August 8, 2011 - 10:00 AM

WASHINGTON (AP) — Officials at Standard & Poor's say they plan to indicate how local and state governments, Fannie Mae and Freddie Mac, and insurers will be affected by the rating agency's downgrade of long-term U.S. debt.

S&P on Friday cut the U.S. credit rating one notch from AAA to AA+ with a negative outlook.

S&P officials told reporters Monday that the agency is looking at key sectors that are linked to the U.S. debt, and will announce "shortly" how those ratings might be affected.

The officials did not name any specific governments or insurance groups. But they said AAA-rated insurance groups, government-sponsored enterprises and state and local governments affected by possible consolidation of programs in Washington would likely be reviewed.