Thought Leadership

Update on S&P Downgrade of U.S. Credit Rating

August 8, 2011

On August 5th, 2011 S&P downgraded the U.S. credit rating from AAA to AA+.  Moody’s had confirmed the U.S.’s Aaa rating prior to S&P’s announcement and the downgrade by S&P should not have been a surprise to the market.  Both rating agencies have retained their negative outlook for U.S. Treasuries.  Please read on for an update on the market’s response and a discussion of the implications for municipals, commodities, and the dollar.