The U.S. lost its AAA credit rating from Standard and Poor's for the first time in history and was downgraded to AA+. A credit rating of AA+ puts the United States in the same category as China, Japa, Taiwan, Spain, and Slovenia.
Slovenia ??? You have got to be kidding.
The downgrade could eventually increase borrowing costs for the U.S. government because its bonds would be considered more risky.
The higher interest rates the U.S. Treasury might have to charge for its bonds could impact other areas, such as mortgages.
Moreover S&P's move is likely to worry foreign creditors especially China which holds more than $1trillion of U.S. debt.