S&P to Evaluate Impact of U.S. Debt Downgrade on Local and State Govts.

Standard & Poor's said they will discuss how local and state governments, Fannie Mae and Freddie Mac, and insurers will be impacted by the rating agency's decision to downgrade long-term U.S. government debt.

On Friday, S&P reduced the U.S. credit rating by one notch from the highest rating of AAA to AA+, with a negative outlook.

According to a report in the Associated Press, officials at S&P said they are looking at key sectors that are linked to the U.S. debt, and will "shortly" announce how those ratings might be affected.

The officials added that AAA-rated insurance groups, government-sponsored enterprises and state and local governments impacted by possible consolidation of programs in Washington would probably be reviewed.