The U.S long-term debt rating was lowered due to concerns about rising budget deficits, S & P saying the new plan for debt reduction passed by Congress was inadequate to stabilize the country’s budget situation.
"The budget balancing plan on which Congress and the Executive have recently agreed is insufficient compared to what, in our view, would be needed to stabilize the public debt on the medium term" , said S&P.
The agency declared being "pessimistic" about the ability of Congress and government to make a broader rebalancing plan out of their previous agreement this week.
The United States had always being rated "AAA" by S & P since the creation of the agency in 1941. However, high fiscal deficit and rising public debt persistency caused S & P to downgrade the U.S. debt to "AA +" last April.
