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