Defining Current Events Terms

There has been a lot of talk on the radio lately about the national debt, our debt ceiling, and our bond rating.  I have a vague understanding of these terms, but not true comprehension.  So I thought it might be a good idea to post a few things I have researched.  If anything, I know my sister will correct any false assumptions I make.

[Note: a lot of these links are to wikipedia]

The S & P Bond Rating for the US was downgraded to AA+

• S & P - (Standard & Poor's) - a division of the McGraw-Hill Companies.  S & P publishes financial research and analysis of stocks and bonds.  Also known as one of the Big Three Credit Rating Agencies.
• McGraw-Hill Companies - publishes my accounting textbook and a lot of other educational materials.
• Some may be more familiar with the S&P 500 that is published about the stock market.  I hear the term S&P 500 on NPR a lot when I'm going home.  But it doesn't really mean that much to me, just let's me know that this company is a reliable source of information for a lot of financial things.
• The Big Three Credit Rating Agencies - Includes S & P, Moody's, and Fitch Group - given authority by the US government over 100 years ago to rate the Railroad companies for the safety of investors. 
• S & P gives ratings from AAA to D for a country/state/borrower/etc. 
• AAA is the best possible rating. It means that a borrower or issuer of a bond is reliable and stable.  An investor is very likely to get what is promised for their money.
• AA+ is our current rating from S & P.  This means that we are slightly higher risk than a AAA rated borrower when looking at a long-term investment.  My understanding of this is that, like most of the world, we're experiencing financial difficulties and if we don't do something to stem the tide now things will only continue to get worse down the road.
• I like to compare this to my own credit rating.  As of right now, it's about average but not that great.  It went down recently because I put my entire Ireland vacation on my credit card and I am paying it off slowly.  My sister has a better credit rating than I do because her debt to income ratio is better.  If she and I were to go a bank for a loan she would have a better chance of getting the money than I would.  My credit isn't terrible compared to about 70% of the US Population, but I'm not that financially sound.  This is why I don't have a mortgage.  Not that I've tried, but I think I should be on better footing before I attempt that kind of purchase.