S&P Keeps U.S. Debt Rating at Highest Level

Treasury Secretary Timothy Geithner traveled to Beijing earlier this month to reassure officials in China, the single-largest holder of U.S. Treasury debt, that the administration is serious about getting control of the deficits once the economic downturn and financial crisis have passed.

Worries about a possible downgrade to the U.S. debt arose last month after S&P warned that Britain was at risk for a downgrade if the government fails to address its increasing levels of debt. That would raise the cost of borrowing for the British government, which, like the U.S., has bailed out a number of its stricken banks.

Thursday's statement by S&P comes only a day after the agency cut its credit rating on 18 U.S. banks, saying volatility will remain high in the financial sector and regulatory oversight is expected to be tightened.