Friday, August 05, 2011

U.S. Credit Rating Downgraded From AAA to AA+

For the first time in history, the U.S.'s credit rating was lowered by Standard & Poor's from AAA to AA+. S&P’s action is the most tangible vote of disapproval so far by Wall Street on the deal between President Obama and Congress to cut the deficit by at least $2.1 trillion over 10 years. S&P has said that it wanted at least $4 trillion of deficit reduction. S&P noted the recent debt ceiling hike did not adequately deal with the underlining deficit issues. The federal budget is at a point where Congress and the administration must deal with the growth in the budget's long term annual deficits.

The full S&P downgrade report can be read here.

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