Standard & Poor's Ratings Services said continued volatility in the credit markets is likely to further reduce credit availability and soften GDP growth across US industries, adding to the fallout from the housing recession.
In a special report, the rating agency said credit cycle pressures are rapidly changing as the US economy slips into a 1 pct growth pace with reduced profit prospects, and credit markets work through subprime mortgage problems.
As credit availability shrinks, S&P also expects that housing and allied industries are likely to come under increasing credit-quality pressure, as quality across different sectors has been steadily eroding.
