The rating was cut Tuesday one notch to AA+ from AAA, the highest possible rating. The new rating is still well into investment grade.
It’s only the second time in the nation’s history that its credit rating has been cut. In 2011, the ratings agency Standard & Poor’s stripped the U.S. of its prize AAA rating after a prolonged fight over the government’s borrowing limit. The Government Accountability Office, in a 2012 report, estimated that the 2011 budget standoff raised Treasury’s borrowing costs by $1.3 billion that year.
At the same time, the huge size of the U.S. economy and historic stability of the federal government has kept its borrowing costs low. Global investors often flock to U.S. Treasury securities during periods of economic turmoil, lowering the interest rate paid by the U.S. government.
Embarrassing, but fully deserved. Thanks, Kevin.
Removed by mod
I am downgrading Fitch citing that they suck
The debt has become a political bargaining chip in the US. I’m amazed we are rated as high as we are…
Having a credit rating on the imaginary debt of the US is ridiculous.
The federal govt doesn’t borrow US dollars - it creates US dollars.
It’s impossible to default.
It’s not impossible to default. It should be, but it isn’t due to “debt ceiling” nonsense. Political instability is the cited reason for the downgrade and, yeah, makes perfect sense why that would be.
“U.S. Credit Rating Downgraded: How Will It Impact Your Investments?”
