U.S. Credit Downgraded: S&P Reduces Rating To AA+ [UPDATE]

The United States has lost its sterling credit rating from Standard & Poor's.
The credit rating agency on Friday lowered the nation's AAA rating for the first time since granting it in 1917. The move came less than a week after a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion – a tumultuous process that contributed to convulsions in financial markets. The promised cuts were not enough to satisfy S&P.



The U.S. would probably keep its AAA rating if a default is avoided, but "whether the outlook on the rating would be stable or negative would depend on whether the outcome of the negotiations included meaningful progress toward substantial and credible long-term deficit reduction," Moody's said.US politicians, commentators and economists weigh in with their views on the US credit rating downgrade by S&PStill, he said, "The United States deserves to have this happen," because of its clumsy handling of fiscal policy.
In reacting to the downgrade, Democrats and Republicans continued to blame each other and pledged to hold firm to their principles.