S&P warns US will not regain AAA-rating soon

The US was hit with a further blow today as Standard & Poor's warned the economy is unlikely to regain its AAA-credit rating anytime soon.

After slashing the US' top notch rating for the first time in its history on Friday, the ratings agency said today it is reviewing the outlook for institutions linked to the long-term US debt rating, the BBC reports. The move comes as S&P downgraded state-backed mortgage giants Fannie Mae and Freddie Mac because of their "direct reliance on the US government". David Beers, S&P's head of sovereign ratings, said the lack of a sensible consensus over US fiscal policies justified the decision, and he does not expect the fiscal backdrop to improve in the foreseeable future. "We still t...