S&P Downgrades US Credit Rating

By: Associated Press Email
By: Associated Press Email

WASHINGTON (AP) -- Credit rating agency Standard & Poor's says it has downgraded the United States' credit rating for the first time in the history of the ratings.

The credit rating agency says that it is cutting the country's top AAA rating by one notch to AA+.

The credit agency said late Friday that it is making the move because the deficit reduction plan passed by Congress on Tuesday did not go far enough to stabilize the country's debt situation.

A source familiar with the discussion said that the Obama administration believes S&P's analysis contained "deep and fundamental flaws."

S&P says in addition to the downgrade, it's issuing a negative outlook, meaning there's a chance it will lower the rating further within the next two years. It says such a downgrade to AA would occur if the agency sees less reductions in spending than Congress and the Administration have agreed to make, higher interest rates, or new fiscal pressures during this period.

S&P says it has changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.

(Copyright 2011 by the Associated Press. All rights reserved.)

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  • by Randy on Aug 5, 2011 at 07:54 PM
    I'd start buying yuan if I was you.
  • by Disgusted Location: Ritterville on Aug 5, 2011 at 07:48 PM
    Keep trying, the fact is Obummer owns this lock, stock and barrel. YES YOU DID! How is that "change" working out for you?
    • reply
      by citizen on Aug 6, 2011 at 10:40 AM in reply to Disgusted
      "How is that change working out for you?" At least as well as your deregulation, trickle down economics, 2 wars, unfunded part D, etc has work for you and the world. To paraphrase the baggies..... default won't have any negative consequences.... Smart bunch of fools
      • reply
        by par4 on Aug 6, 2011 at 12:49 PM in reply to citizen
        Before you display any more of your ignorance you should study a little history.....such as in January of 2007 what was the unemployment rate, what was the national debt compared to January of 2006, where was the stock market and what was it doing? January of '07 is when the liberals took over congress and while Bush didn't use his veto powers as much as he should have, every thing that has happened to our economy since then is in their court. From January '09 til January of '11 the democrats, in total control of both houses of congress as well as the white house, went on an unprecedented spending spree, making the proverbial drunken sailor look like a piker. That's how it working out for all of us, and that's what caused the Tea Party movement to rise up.
        • reply
          by Anonymous on Aug 6, 2011 at 04:40 PM in reply to par4
          Don't forget that the republicans had control of both houses, hence the purse strings from Jan '95 to Jan '07, Clinton getting the credit for the low level of spending thru 2001.
      • reply
        by Luke on Aug 6, 2011 at 07:00 PM in reply to citizen
        We all heard obama say he liked Harry Trumans saying about "The buck stops here". But we also know that obama is all to ready, willing and able to pass the "buck" off as quickly as possible. (the blame game) Clinton used SS money to pay down the national debt to make the party look good, at the same time he announced that the American people were going to have to sacrifice again as he raised the tax rate for SS to try to cover what he did. Something else Clinton did, in the time frame of 1995-1997, he had a lot of dealings with Freddy and Fanny that a well known financial advisor wrote about in a book, if you would like to read about it you can google it up and see for yourself. It is; "Burkett-The Coming Crash of 2008". That book was written and published in 1998. A lot of the blame being thrown around by the dems would be put to rest if more people would read that book, I believe the ranks of the democratic party would also be thinned out. The last two and a half years of unprecidented, spending and borrowing, has had its devistating effect, now we will all be hurt by it, and the "blame game", continues.
  • by Anonymous on Aug 5, 2011 at 06:14 PM
    Thank you, Tea Bagger morons
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