America has lost its prestigious AAA rating as credit rating agency Standard and Poor's (S&P) has downgraded it to AA+, despite a deal being drawn to raise their debt ceiling.
Last month S&P warned that the US faced a 50-50 chance of having their credit rating cut within the next three months. Shortly after the agency put the US on a negative watch, the value of the dollar fell.
Despite the debt deal made overnight which will include large spending cuts over the next ten years, the rating is still under review. Ewen MacAskill and Alex Hawkes have written:
Stock markets around the world rallied on Monday, in relief that the world's largest economy would probably avoid running out of cash this week. But the agreement, which includes around $2.5 trillion of spending cuts over the next decade, has been criticised by some on both sides of the political divide, and will probably not save America's triple-A credit rating.
Source : Guardian
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