U.S. Still AAA According to Fitch
 

Could S&P have shot themselves in the foot? Time will tell.

http://money.cnn.com/2011/08/16/news....htm?hpt=hp_t2

NEW YORK (CNNMoney) -- Fitch Ratings on Tuesday reaffirmed the United States' AAA credit rating.

The move comes less than two weeks after Standard & Poor's downgraded the United States' long-term debt to AA+.

"[T]he key pillars of US's exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base. Monetary and exchange rate flexibility further enhances the capacity of the economy to absorb and adjust to 'shocks,' " Fitch said in a statement.

Fitch did add a caveat, however. It would likely revise its outlook on the U.S. rating to negative from stable if the congressional committee charged with proposing at least $1.2 trillion in deficit reduction fails to reach agreement, or if the economic recovery proves weaker than expected. That means there would be a greater than 50% chance that Fitch would downgrade the country within two years.

S&P took a risk no doubt, by getting political with it, going beyond being a credit agency. But they also made it clear it was more of an indictment of the politicians inability to play nice and work together than the ability of the USA to pay it's debt's.