S&P have downgraded the US debt rating from AAA to AA+ and may downgrade it further to AA within the next two years.
In its statement, S&P said that it had changed its view "of the difficulties of bridging the gulf between the political parties" over a credible deficit reduction plan.
S&P said it was now "pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics anytime soon."
How long will it take for the other two rating firms to downgrade the US debt rating as well?
At any rate, Obama is the President to have been at the helm when the US debt rating dropped from AAA for the first time ever. Look for the markets to drop even more next week. Hopefully this doesn't start a depression.
Considering that most of Obamacare won't even go into effect for two more years, this downgrading wasn't even affected by debt being accrued by Obamacare. If Obamacare isn't repealed by the next Congress and President, then we can count on further downgrading of the US debt rating.