S&P Downgrades US Credit Rating
WSJ – Standard & Poor’s unprecedented decision to strip the U.S. of its top credit rating was the downgrade heard around the world. S&P downgraded long-term U.S. debt to AA+ and put the new grade on “negative outlook,” meaning the U.S. could be downgraded again in the eighteen months to two years.
Friday night’s move dramatically showed that the unit of McGraw-Hill Cos. no longer believes long-term U.S. government debt is among the very safest investments in the world. S&P also veered away from its reputation during the financial crisis, when critics said the firm lost its independence.