Congressman Larry Bucshon on S&P Credit Rating Downgrade

Aug 8, 2011 Issues: Budget and National Debt

(Washington, D.C.) - Congressman Larry Bucshon (IN-08) released the following statement regarding S&P downgrading the United States’ credit rating from AAA to AA+.  The rating agency also maintained a ‘negative outlook’ on our nation’s rating.

“Last week, I voted for the Budget Control Act with the hope that demonstrating real spending cuts of over $2 trillion – larger than the increase in the debt limit - would preserve our nation’s AAA credit rating.  Two of three agencies maintained our nation’s AAA rating; however, it is unfortunate that S&P downgraded our nation’s credit rating one level to AA+.

With our nation’s credit rating being downgraded for the first time in history, I hope the President hears the alarm and  will turn away from his drive for more taxes and more spending and embrace the recommendations from S&P which proclaim entitlement reform as the key to long-term fiscal stability.  I sincerely hope the President will provide leadership at this critical stage and present his plan for entitlements that keeps our promises to current and future beneficiaries, prevents Medicare's insolvency in 2024, and returns our nation’s from S&P to  AAA.

It is time to put an end to politics as usual, stop passing blame and pointing fingers, and quit the empty, political rhetoric.  S&P cited last week’s agreement as falling short of expectations and the political discord in Washington, D.C. as reasons for the downgrade.  The Cut, Cap, and Balance approach, which I cosponsored and voted for, would have met S&P’s expectations and preserved our rating.  We need structural, fundamental reforms in the way we spend taxpayers’ money in order to restore confidence in our ability to handle the rising debt burden.”

###