Reuters: U.S.: S&P says U.S. faces 20-percent risk of double dip

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S&P says U.S. faces 20-percent risk of double dip Jun 26th 2012, 15:31 Tweet Share this Email Print Traders stand outside the New York Stock Exchange August 8, 2011. Credit: Reuters/Shannon Stapleton NEW YORK | Tue Jun 26, 2012 11:31am EDT NEW YORK (Reuters) - The United States faces 20-percent odds of a return to recession, rating agency Standard & Poor's said on Tuesday, although it said a slow recovery remains the company's baseline forecast for the world's biggest economy. "But the risk of another downward leg on the recession remains real," the agency said in a statement. While S&P said it could be underestimating American consumers, years of stagnation, as Japan has seen, could also occur. "There are differences between Japan's situation and the current one in the U.S., but the problems are similar," said Beth Ann Bovino, a senior S&P economist, in the statement. "Our hope is that policymakers in the U.S. have learned from Japan's mistakes." The agency cut the U.S. sovereign rating to AA-plus last year in a contentious move that drew loud protests from the government. Moody's Investors Service rates the United States Aaa, and Fitch rates the country AAA. All three ratings carry a negative outlook. (Reporting By Luciana Lopez; Editing by Padraic Cassidy) Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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