The credit ratings of Fannie Mae and Freddie Mac - protagonists of Bank of America [see our 8/8 story in Behind The News] - were cut this morning by Standard & Poor's, along with the ratings of other major financial players.  S&P's cited its concerns over their connection to, and reliance upon, the U.S. government.  Both Fannie and Freddie were dropped from a AAA rating to AA+ rated. 

Other major players to have their ratings cut included: Depository Trust Co. (DTC),  National Securities Clearing Corp. (NSCC), Fixed Income Clearing Corp. (FICC), and the Options Clearing Corp (OCC).  S&P doesn't plan to stop there.

The rating agency, with a "full wind to its sails," plans to inform local and state governments and insurers how they, too, will be affected by the latest downgrades.   Among those that may be affected are various insurance groups and state and local governments that could be affected by Washington cost-cutting.

As compared to other debt-heavy countries like the U.K. and France, the S&P doesn't expect the U.S. debt burden to decline.  S&P is also troubled by the U.S. political environment, which it see as not being as strong as those in the other countries.   [CNBC, 8/8/11]