U.S. is losing the AAA-rated excellent for the first time

Reduced the credit rating agency Standard & Poor's on Friday that the classification of debts of the United States for the first time since the country won the top ranking in 1917, the symbolic blow to a superpower in the economic world in what was widely criticized tone of American politics - NEW YORK system.

The company said it is one of the three major agencies that provide advice to investors in debt securities, it will reduce the classification of long-term debt Federal's AA - plus, one notch lower than a higher degree of AAA concerns about the government's budget deficit and high debt burden. Work is likely to eventually raise borrowing costs for American companies, government and consumers.
"The reduction reflects our view that fiscal consolidation plan that Congress and the administration recently agreed to live up to what, in our view, will not be required to achieve stability in the dynamics of government debt over the medium term," said Standard & Poor's said in a statement. The Standard & Poor's credit rating outlook on the new U.S. is "negative", in a statement, referring to the other it was possible to reduce the level in the 12 months to 18 months.

The move reflects the deterioration in global economic stature of the United States, which had a AAA credit rating from S & P since 1941, and it can have implications for the dollar reserve currency status.
"The global system must adapt now to many of the effects and uncertainties of the loss once unimaginable from AAA America," said Mohamed El-Erian, co-chief investment officer of Pacific, which oversees the Investment Management $ 1.2 trillion in assets.
The decision comes after a fierce political battle in Congress over spending cuts and tax increases to reduce the burden of government debt and allowing the maximum legal borrowing.
On August 2, President Barack Obama signed legislation aimed at reducing the fiscal deficit by 2.1 trillion dollars over 10 years. But that was far less than $ 4 trillion in savings, S & P called as a "down payment" on a good U.S. financial reform.
Came the political stalemate in Washington on the handling of long-term financial problems facing the United States against the backdrop of slowing U.S. economic growth and led to the worst week in the stock market in the United States within two years.
Index Standard & Poor's 500 stock 10.8 per cent of trading days in the last 10 on fears that the U.S. economy may be heading to the other, and because of the recession and the crisis of European debt has worsened.
Now Treasury bonds are rated, no argument once seen as the safest security in the world, less than the bonds issued by countries such as Britain, Germany, France and Canada.
A source familiar with the discussions and briefed Obama earlier today about the intentions of S & P, but the discussions were not only with the Treasury officials did not include the White House, told Reuters.
Late on Friday, said the Treasury accounts in the debt rating agency was wrong by about $ 2 trillion.
The Standard & Poor's confirmed that it had changed economic assumptions after discussions with the Treasury but said it did not affect its decision to cut back.
"We take our responsibilities seriously, and if at the end of our analysis of the Committee concludes that this assessment is not as we believe that it should be, it is our duty to make that call," David Beers, head of sovereign ratings at S & P, told Reuters.
Agencies add: It was the first time that the United States has reduced since it got a rating of AAA from Moody's in 1917, and has a classification of S & P since 1941.
A spokesman for the Treasury Department claims that there is' error dollar 2000000000000 "in the analysis of S & P, using the pretext that the agency recognized the foundation wrong and erred on spending plans and expectations of the debt.
But he defended John Chambers, chairman of the S & P sovereign ratings, and resolution. "It's a matter of attitude budget medium-and long-term United States, which need to be under control," he said on CNN. "This is the problem and to take a long time whether this administration and the previous administration," he said.
At the same time, demanded that China, the largest foreign holder of U.S. debt on Saturday that the United States tighten the belt and respond to "debt addiction" in the wake of the decision by Standard & Poor's reduced credit rating in the United States.
Currently, China has $ 1.2 trillion of U.S. Treasury bonds, the largest share of any central bank. The comments published by state news agency run by the state in Beijing in response to the first official Xinhua decision to S & P.
China said it has "every right" to demand in the United States to address the debt problem. The barb, said the official Xinhua news agency of China, the largest foreign holder of U.S. Treasury bonds, now has "every right" to ask for Washington to address the structural problems of debt and the protection of China's dollar-denominated assets.
"China, the largest creditor of the only superpower in the world, now has every right to demand the United States to address the structural problems of debt and ensure the safety of dollar assets in China," said the commentary in English.
"For the treatment of addiction to debt, and the United States to re-establish the principle of common sense that one should live within its means"