S&P executive: 1 in 3 chance of future US credit downgrade

Chambers also said that it would take “stabilisation and eventual decline” of the federal debt as a share of the economy as well as more consensus in Washington for the US to win back a top rating.

S&P downgraded the US rating Friday,from AAA to AA+,for the first time. Meanwhile,former Federal Reserve Chairman Alan Greenspan said he expects the stock market slide to continue in the wake of a decision by S&P to downgrade the US credit rating.

Appearing Sunday on NBC’s “Meet the Press,” Greenspan said markets will take time to bottom out and that he expects a negative reaction on Monday to the S&P action.

But Greenspan also said he doesn’t see any risk in investing in the United States and says that S&P’s downgrade won’t change that. The former Fed chairman said the downgrade “hit a nerve” and is damaging to the psyche of the country. But he said he can’t foresee a scenario in which the US will default on its debts.