US Economy Special Analysis: America's Credit Rating is Downgraded --- And It May Happen Again

S&P have made it clear in their  press release that this downgrade could be just the first step, with a further reduction to AA if certain policy changes are not made in Washington. Thisis no surprise: S&P had warned since April that if no long-term plan to halt America's soaring debt was put in place, then a downgrade would be the response. Politicians in Washington ignored that caution, and it will be interesting to see how those same politicians will react to the conditions S&P are setting out to avoid a further downgrade.

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