Why S&P's Downgrade Of The U.S. Credit Rating May Not Be As Bad As It Sounds

I agree, maybe this downgrade may not be all that bad. Only if Congress will use this as the opportunity that it is, and act like adults. If they could their personal agendas aside and focus on the needs of the majority of the American people, we may could solve some of our revenue and spending problems. Once again, only time will tell if they heed the call.

Standard & Poor's just downgraded America's credit rating. This sounds portentous and world-historical, but the impact of the downgrade could be relatively minor.

S&P downgraded the U.S. by one notch, from AAA to AA-plus. This was not at all surprising. S&P said this spring that it was considering lowering America's credit rating, and speculation about the downgrade increased over the past few weeks. The U.S. still has AAA ratings from the other two big rating agencies, Moody's and Fitch.

So the downgrade is one rating agency saying it's slightly less confident that the U.S. will find the political will to control its debt in the medium- to long-term. S&P is not privy to any secret information; this is just its opinion based on facts available to everyone.

Read more at source