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History offers few clues on the consequences of a downgrade to the world's dominant risk-free asset.
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The consequences of a simple downgrade can thus be devastating for a company.
Bankers have deluged Congressional staff members with research reports outlining the bleak consequences of a default, or even a downgrade of United States government debt by the major rating agencies.
For reasons that were not altogether clear though worries about the unseen consequences of the downgrade on banks' books clearly played a part the KBW index of bank shares tumbled by 11% on a day when the S&P 500 fell by an ugly-enough 6.7%.
The prospect of progress could avert the consequences of a failure, which could include a further downgrade of the United States government's credit rating.
Last month, the markets took action, in the form of a downgrade and the possibility of future downgrades that caused the markets to tumble.
And the prospect of a downgrade destroyed Wachovia.
Did you know it's at-risk of a downgrade?
But the consequences of a rating downgrade which makes it more expensive for companies to raise debt on the open market could raise yet more concerns over how the emirate of Dubai will cope with its own sovereign liabilities.
The consequences of a botched launch?
Four consequences of a $15 minimum wage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com