S&P's Historic Downgrade Announcement Doesn't Go According to Plan
What was certainly a historic announcement earlier this weekend was made even more historic, thanks in part to a major error by rating’s agency S&P, which led to new turns in the aftermath of its decision to downgrade U.S. debt from AAA status for the first time ever.
Not surprisingly with an announcement of this magnitude, PR played a major role.
According to Playbook, citing “administration sources,” after hearing from the S&P on their downgrade decision last Friday afternoon, the Department of Treasury asked the agency to hold off so they could review the numbers, but according to the administration sources, “S&P said it was going ahead with the announcement because the news media were expecting it! In their view, they had promised something, and they seemed to be extremely interested in going out with it.”
However, the biggest issue for S&P is that when they first notified Treasury about the upcoming downgrade...
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