S&P downgrades credit ratings linked to debt - WALB.com, Albany News, Weather, Sports

By MARTIN CRUTSINGER AP Economics Writer

      WASHINGTON (AP) - Officials at Standard & Poor's are downgrading the credit ratings of Fannie Mae and Freddie Mac and other agencies linked to long-term U.S. debt.
      The agency says it has also lowered the ratings for: farm lenders; long-term U.S. government-backed debt issued by 32 banks and credit unions; and three major clearinghouses, which are used to execute trades of stocks, bonds and options.
      All the downgrades were from AAA to AA+. S&P says the agencies and banks all have debt that is exposed to economic volatility and a further downgrade of long-term U.S. debt.
      Officials at Standard & Poor's say they will also indicate shortly how local and state governments will be affected by their decision on Friday to lower the long-term U.S. debt from AAA to AA+.
    
     
      (Copyright 2011 by The Associated Press.  All Rights Reserved.)
       AP-NY-08-08-11 1037EDT