The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday in an unprecedented reversal of fortune for the world's largest economy.

S&P cut he long-term U. S. credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden.

The move is likely to raise orrowing costs eventually for the American government, companies and consumers.

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

The decision follows a bitter political battle in Congress over cutting spending and raising taxes to reduce the government's debt burden and allow its tatutory borrowing limit to be raised.