zero hedge: The Bond Vigilantes Are Here: US Net Notional CDS Outstanding Surpasses Greece For The First Time:
The current implied credit rating for the U.S. is 2.7, compared to 2.2 back in March, equivalent to approximate ly ‘AA’ on S&P’s scale. That is two levels below the U.S.’s current rating. March was the last time Bloomberg Brief looked at these implied credit ratings. At that time, the three most likely candidates to be downgraded were Portugal, Belgium and Spain.
Regardless of what happens in DC, the US is now flirting with a credit downgrade. The negative effects of that will filter down to state and local government debt.