U.S. Credit Rating Takes Hit

S&P puts more pressure on the U.S. to figure out a way to combat the country's massive deficit.

The credit rating agency Standard & Poor's lowered the United States' long-term debt repayment outlook from “stable” to “negative," putting the onus on lawmakers to pass a plan to tackle the nation's ever-increasing deficits. If they don't, S&P could lower its rating of the U.S. government's credit from its AAA status within two years, making it harder for the country to borrow money. The outlook adjustment follows last week's proposal by President Barack Obama to trim $4 trillion from deficits over the next 12 years, a response to a Republican plan to cut $4.4 trillion over 10 years. The plans differ over where to cut – Obama's ends tax credits and continues trimming the military, while Congressman Paul Ryan focuses on cutting social spending. Now there's just the tiny matter of reconciling the two.