Bill Gross Said Market Worried About U.S. Credit Rating, After Twin Sister UK Gets a Negative Outlook

Speaking on CNBC, PIMCO's Bill Gross provided some color on his earlier comments that the weakness in the dollar, stocks and bonds today is related to market fears that the U.S. could lose its AAA-rating, following news that S&P moved the U.K.'s ratings outlook to Negative.

Gross said he does not see the U.S. losing its AAA rating anytime soon, but said there is an increasing risk. Gross said investors view the UK and US as "relative twins," and both countries are moving in a direction of much higher debt.

Gross said with 1-2% downside moves in various asset classes today, the market is making the statement that they are worried about the US credit outlook.

Gross notes the current U.S. deficit is 10% of GDP, which could increase to 100%. He said a level of debt like this is a characteristic of non-AAA countries.

In its lowered outlook on the UK today, S&P said, "We have revised the outlook on the U.K. to negative due to our view that, even assuming additional fiscal tightening, the net general government debt burden could approach 100 percent of gross domestic product and remain near that level in the medium term."

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