http://www.cbc.ca/m/rich/business/st...back-kids.html
S&P said it made its decision to downgrade the U.S. rating because it lacks confidence that the country's political leaders will make the choices needed to avert a long-term fiscal crisis.
The two other principal ratings agencies, Moody's and Fitch, kept the U.S. at the triple-A grade but warned its continued rising debt level was not consistent with holding the top ranking. Moody's also issued a "negative" outlook on the U.S.
Canada, Australia and Sweden have suffered similar downgrades and recovered to reclaim the coveted triple-A rating, but not without steering through some tough years and making equally tough decisions on spending.
The countries join Austria, Denmark, Finland, France, Germany, Netherlands, Norway, Singapore, Switzerland and the United Kingdom as the world's major triple-A nations.
Other countries, such as Iceland and Ireland, saw their triple-A ratings evaporate as their economies suffered near-death blows during the 2008 financial crisis and show no signs of returning to top-tier status soon, if ever.
TD's Alexander acknowledges the U.S. government has some big problems, but if it buckles down, gets its economic and political houses in order, it faces little risk of an economic relapse or a further decline in its credit rating.