BNJacksonGA

(Washington, DC) The international credit ratings agency Standard and Poor's has confirmed overnight that the United States Government has had its national credit rating downgraded one full notch from AAA to AA+ in the light of the recent drama concerning the US debt ceiling and the negotiations to have it raised before the 2nd August deadline, citing concerns about budget deficits.

In a statement, S&P said that the main reason for the downgrade was that the final deficit reduction bill passed by Congress and the Senate this Tuesday past "did not go far enough." The potential at this stage is that this downgrade could in turn raise the cost of borrowing for the US Government in the future. It also stands to have a knock on effect for investor confidence, correspondents claim.

Losing its "Triple A" rating for the first time in history is a significant blow to President Barack Obama, leading a country with enormous debt, unemployment at over 9% and the likelihood of another recession to follow.

There are no plans at this time for the other 2 major credit rating agencies, Fitchs and Moody's to follow S&P's lead.

Tags: Barack Obama, Fitchs, Moody's, Standard and Poor's, U.S. Congress, U.S. Senate, United States Government