The United States AAA credit rating was downgraded for the first time by Standard & Poors, claiming the nation’s political process is broken and criticizing lawmakers for failing to cut spending enough to reduce record budget deficits.

Not only did they lower the credit rating to AA+, the outlook is still considered “negative” as it becomes less confident the U.S. will end Bush-era tax cuts or tackle entitlements.  If spending reductions are lower than agreed to, interest rates rise, or new fiscal pressures result in more government debt, the rating may be cut to AA.