United States Credit Rating Downgraded from AAA to AA+

Followed by Standard and Poor's (S&P's) downgrading the United States' credit rating from AAA to AA+ on Friday August 5, 2011, the agency downgraded Fannie Mae and Freddy Mac the following Monday. Downgrading the country came a week following the debt ceiling war that haunted the country for, at least, a good six months before heating up and then resulting in a bitter agreements that could take years to actually resolve.

Prior to the country's downgrade, the White House made it clear to S&P that their math computation had errors to the tune of some trillion dollars; however, the country's rating was still reduced after S&P recalculated their figures. According to S&P, the downgrade was not based solely on the ability for the US to pay its debtors; but that other criteria, such as the refusal of Tea Party members to cooperate with Speaker Boehner, and the general public display in the attitude of the Republican Party showed a breakdown within the American government. S&P used the breakdown in government as marks against the United States and thus decided that the country, at least under its current congressional bodies, has shown it no longer deserves a triple-A credit rating.

Although the other two agencies, Moody's and Fitch, gave the United States a triple-A rating on the day S&P downgraded the country, lingering fears the other agencies may change their minds and lower their grades have caused the stock markets to plunge.