US lawmakers have been warned by Standards and Poors credit rating agencies and also Moody’s investment services that their intention to change the credit assessment stipulations relating to US residents will have detrimental effects on not only stocks but also the overall value of the US dollar. Standard and Poor’s have actually already downgraded the credit ratings of US residents consequently causing a drop of over 1% in the overall value of the US dollar. Moody’s investment services have also warned politicians in Washington that missed payments on debts with the service will lead to the downgrading of credit rating assessments which has caused much controversy with both residents and financial institutions in the U.S. Many leading experts are also saying that a downgrade in the US credit score ratings will cause a huge increase in the borrowing costs for the US government and will have detrimental effects towards both small and large businesses, especially during a period in which many businesses are still recovering from the global economic crash.

Also, according to the Wall Street Journal, S&P’s move to reiterate its credit ratings has gone a step further than many people actually realize and stated that even if the United States were to clear all of their outstanding debts, the US could still be downgraded for outstanding payments to all types of creditors.

This particular move could also affect other institutions throughout the US including credit card banks, home loan banks and up to 7000 municipalities throughout the US that could also feel the heavy impact of a downgrading of its current credit rating.

There are however, many people who feel that these agencies are simply talking about a move to help motivate politicians and local governments into paying back their debts, yet if we are to take a look at the debt of Portugal and Greece, S& P have already downgraded their credit rating system, even though neither of these countries had ever miss a payment.

This is said to be one of the biggest financial moves in recent US history and could have serious negative impacts on not only the government but also the financial standing of individuals throughout the US. What was once seen as a strong financial power in the world is now being questioned by two of the biggest credit rating institutions in the world and ultimately it will be their decision to decide whether the US is to be downgraded from the credit status of “stable” to “negative”.