The rating agency Standard & Poor s downgraded the U.S. credit rating on Friday, August 5, from the highest AAA level to a level below AA +. This is mainly due to new concerns about the government’s budget deficit, as well as the rising ceiling of the country’s public debt.
S&P justified its actions as follows: “The downgrade of the US rating reflects the view that the loan consolidation plan, which was recently adopted by Congress and the Presidential Administration, is designed for short-term actions, but in our view , should have stabilized the dynamics of public debt in the medium term. “…
The downgrade reflects the deterioration of the U.S. economic position globally and could have a negative impact on the situation of the dollar as a world reserve currency. The United States first received an S&P credit rating in 1941 and has never been demoted since.
The outlook for the next ranking remains “negative”. S&P said the next assessment will be evaluated in 12-18 months.