From the S&P website:
United States of America Long-Term Rating Lowered To ‘AA+’ Due To Political Risks, Rising Debt Burden; Outlook Negative
Publication date: 05-Aug-2011 20:13:14 EST
The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips
Worth reading the whole of the S&P press release. Going to be a lot of political finger-pointing over this.
Guess this is the upshot of a Congress that recklessly f*cks around with the stability of the world’s largest economy.