“It would be unprecedented in modern times for an advanced G-7 country, like the U.S., to default on its sovereign debt,” S&P said in a bulletin. S&P noted that during the last decade, Congress passed legislation to raise or suspend the debt limit five times during periods of political impasse. The world’s largest economy had top credit ratings with all three major credit rating agencies until August 2011, when S&P cut its U.S. rating by a notch to AA-plus amid a previous round of political battles over debt, deficits, and the debt ceiling.
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