S&P Cuts US Debt Ratings Outlook: "Negative"

This time it's not a Chinese rating agency. 

Standard & Poor's Ratings Services Inc. cut its outlook on the U.S. to negative, increasing the likelihood of a potential downgrade from its triple-A rating, as the path from large budget deficits and rising government debt remains unclear.

The Dow drops over 200 points.  S&P doubts if the US government will seriously address the financial crisis before 2014.

In explaining its decision to put the U.S. credit rating on negative watchm S&P said the U.S. deficit "ballooned" to more than 11% of GDP in 2009 from a range of 2% to 5% from 2003 to 2008. It noted the gap between both Republicans and Democrats about how to cut the deficit "remains wide." Even if an agreement is found between both sides, "there is a reasonable chance that it would still take a number of years before the government reaches a fiscal position that stabilizes its debt burden," S&P said.