The Effect of Downgrades on Credit Ratings

When a company's credit rating is downgraded, interest rates for borrowing become more expensive because the signal to lenders is there's a higher risk that they will not be paid back. The Fure was so great that the S&P president got fired and the Department of Justice sued S&P's holding company and almost bankrupted them. And nobody's had the nerve to downgrade since. Now, what's up? What's up is it's part of the plan, I think.