Downward Mobility: Where U.S. Ranks Now

Aug. 6, 2011— -- Standard & Poor's downgraded the U.S. credit rating from AAA to AA+ on Friday, the first time in history, America's credit rating has been downgraded.

"The downgrade," S&P said, "reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics."

For more on Standard & Poor's downgrade on U.S. long term debt, click here.

Here is the current sovereign rating list from Standard & Poor's:

Long-Term S&P Rating

Australia (Commonwealth of) (Unsolicited Ratings) AAA

Austria (Republic of) AAA

Canada AAA

Denmark (Kingdom of) AAA

Finland (Republic of) AAA

France (Republic of) (Unsolicited Ratings) AAA

Germany (Federal Republic of) (Unsolicited Ratings) AAA

Guernsey AAA

Hong Kong (Special Administrative Region) AAA

Isle of Man AAA

Liechtenstein (Principality of) AAA

Luxembourg (Grand Duchy of) AAA

Netherlands (State of The) (Unsolicited Ratings) AAA

Norway (Kingdom of) AAA

Singapore (Republic of) (Unsolicited Ratings) AAA

Sweden (Kingdom of) AAA

Swiss Confederation (Unsolicited Ratings) AAA

United Kingdom (Unsolicited Ratings) AAA

United States of America (Unsolicited Ratings) AA+

Belgium (Kingdom of) (Unsolicited Ratings) AA+

New Zealand AA+

Abu Dhabi (Emirate of) AA

Bermuda AA

Kuwait (State of) AA

Qatar (State of) AA

Slovenia (Republic of) AA

Spain (Kingdom of) AA

China (People's Republic of) AA-

Japan (Unsolicited Ratings) AA-

Saudi Arabia (Kingdom of) AA-

Taiwan (Unsolicited Ratings) AA-

Chile (Republic of) A+

Italy (Republic of) (Unsolicited Ratings) A+

Slovak Republic A+

Andorra (Principality of) A

Czech Republic A

Emirate of Ras Al Khaimah A

Estonia (Republic of) A

Israel (State of) A

Korea (Republic of) A

Malta (Republic of) A

Oman (Sultanate of) A

Trinidad and Tobago (Republic of) A

Aruba A-

Botswana (Republic of) A-

Cyprus (Republic of) A-

Malaysia A-

Poland (Republic of) A-

What do these ratings mean, in terms of real risk assessment? Here are the narrative definitions from Standard & Poor's:

'AAA' -- Extremely strong capacity to meet financial commitments. Highest Rating.

'AA' -- Very strong capacity to meet financial commitments.

'A' -- Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.

'BBB' -- Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.

'BBB-' -- Considered lowest investment grade by market participants.

'BB+' -- Considered highest speculative grade by market participants.

'BB' -- Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.

'B' -- More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.

'CCC' -- Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments.

'CC' -- Currently highly vulnerable.

'C' -- Currently highly vulnerable obligations and other defined circumstances.

'D' -- Payment default on financial commitments.

Note: Ratings from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.