Standard & Poor’s officials stood by their decision announced Aug. 5 and laid blame on a political system that failed to adequately address deficit reduction in the compromise law that President Barack Obama signed Aug. 2 to avert a U.S. default on its debt.

New York-based S&P lowered the AAA credit rating for the U.S. by one level, to AA+, in response to the deal Obama and lawmakers reached to raise the $14.3 trillion debt limit.

The company’s statement on the downgrade said it’s “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 anytime soon.”

Continue reading →