The move came less than a week after a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion – a tumultuous process that contributed to convulsions in financial markets. The promised cuts were not enough to satisfy S&P.
Credit ratings are given not only to countries but also to corporations. The Business Insider reports that in the years gone by the US had an impressive 60 companies that had an AAA rating. In 1995 that number went 
down to about 30 and, today, just 4 US corporations have the highest credit rating, including Microsoft. The other three companies are Mobil Exxon, Johnson & Johnson and Automatic Data Processing.
Having an AAA credit rating from an agency means that if you have a bill that is supposed to be paid by a government or a company you have the best chance of getting your bill paid back in full.
The US government’s S&P credit rating of AA+ is still a credit-worthy rating but not as safe as having the AAA rating. The US Treasury Department is already disputing Standard and Poor’s decision, calling it “flawed.”
In 2008, Standard and Poor gave Microsoft the highest status for credit rating, beating other high profile companies like Apple, Google and Amazon.
“Assigning an ‘AAA’ rating to Microsoft is a rare development in U.S. credit history and represents an unusual combination of qualities that are shared by few other companies,” S&P analyst Nicholas Riccio had said in a statement then.
S& P had cited factors such as size and scope of its business, its dominant competitive position and strong growth outlook as Microsoft’s strengths.
Interestingly, last week it was revealed that Apple had more cash and marketable securities in reserve than the U.S. Government. Apple was said to have $ 76.4 billion while the U.S. Government was just short of that with an operating cash balance of $ 73.7 billion.
The Atlantic hypothesized that Apple’s reserves would have been enough to buy Goldman Sachs or Facebook.
As of now, though Standard and Poor’s has downgraded the U.S.’ credit rating, two other credit rating agencies – Moody’s and Fitch, still classify the economy in AAA status.
The Standard and Poor’s website says that “credit ratings are opinions about credit risk published by a rating agency. They express opinions about the ability and willingness of an issuer, such as a corporation, state or city government, to meet its financial obligations in accordance with the terms of those obligations. Credit ratings are also opinions about the credit quality of an issue, such as a bond or other debt obligation, and the relative likelihood that it may default.”