S&P downgrades US debt to AA+

S&P downgrades US debt to AA+ The US had its AAA credit rating downgraded for the first time by Standard & Poor’s to AA+ based on its judgment that the debt ceiling deal agreed by lawmakers would not be enough to curtail record deficits.
“The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” S&P said in a statement released late on Friday.
Global equity markets had suffered their worst week since the depths of the financial crisis, only to face the prospect of a downgrade.
The ratings cut followed a dispute with the US administration over the agency’s calculations when it was notified on Friday, resulting in a delay in the announcement.

http://link.ft.com/r/M2ZOXX/JE9QN9/3O62UJ/8ACPRG/KQQKLP/50/h?a1=2011&a2=8&a3=5