NEW YORK—(ENEWSPF)—August 5, 2011. Standard & Poor’s has cut the long-term credit rating of the United States one notch from AAA to AA+ based on concerns about the government’s budget deficits and rising debt burden. It is anticipated that this move will eventually raise interest rates for the government, businesses and consumers.
“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” S&P said in a statement.
The White House has not yet commented on the matter.
To review the Standards & Poor’s rationale for the downgrade, visit www.standardandpoors.com