Here's the headline from S&P's full report:
United States of America Long-Term Rating Lowered To 'AA+' On Political Risks And
Rising Debt Burden; Outlook Negative
Don't miss this (it could get worse):
The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.
A here's a very good reason to send serious conservatives to Congress and the White House in 2012:
More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.
Time to send some adults to D.C.
Only the Tea Party Had a $4 Trillion Plan