Credit Ratings: While S&P Rating Not Favorable to United States, It Only Represents an Opinion; As Such It Does Not Carry Any Weight

[Note: a copy of the AA+ rating report is located at the link (AA+ rating report).]

The news broke on August 5, 2011, that the Standard and Poor’s (S&P) credit rating agency reduced the credit rating of the United States from an AAA to an AA+. While this seemed to injure the ego of politicians (and perhaps some citizens) in the country, it is important to remember that S&P’s rating only represents its opinion; the company does not have any true power. Perhaps it is time to reduce the influence of such agencies.

The president of S&P, Deven Sharma, said the following during congressional testimony in 2009

Although I am not a lawyer, I understand that courts have indeed affirmed that credit ratings are opinions that are matters of public concern protected by the First Amendment.