Standard & Poor's (S&P) downgraded US credit rating for the first time in history on Friday and said that the US politicians failed to cope with the massive fiscal deficit and debt management and burden.
S&P decreased US rating from AAA, one notch to AA+, and added a negative outlook to it, saying there was a chance it could be cut again within two years if progress is not made cutting the huge government budget deficit .
It was the first time in the history of the country that it was downgraded since it received an AAA rating from Moody's in 1917; it has held the S&P rating since 1941 till now.
The rating came after a strong push back from the White House, which called S&P's analysis of the economy deeply flawed, let see what version comes from S&P in response.
A Treasury spokesperson alleged that there was a "two trillion dollar error" in the S&P analysis, without offering any immediate explanation.
The downgrade of rating blow came after the White House, Democratic and Republican legislators finally agreed on Tuesday to a deal to raise the nation's debt ceiling after months of severe fighting which sent jitters rippling through the global economy still trying to recover from the 2008 recession , stocks all around the globe tumbled severly.