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Outlook revisions and downgrades often raise borrowing costs.
They also can raise borrowing costs for companies.
Ending the tax exemption for municipal bonds could raise borrowing costs.
Republicans have steadfastly opposed this change, arguing it would raise borrowing costs for future homebuyers.
Credit remains in short supply because banks have had to cut loans and raise borrowing costs.
The move is likely to raise borrowing costs for the US government, companies and consumers.
Just last month, the bank's president, Jean-Claude Trichet, threatened to "pre-emptively" raise borrowing costs.
A lowered rating could raise borrowing costs for big Japanese corporations with impeccable credit.
The increases are intended to raise borrowing costs and cool demand for big-ticket items like cars and homes.
Rating cuts also affect debt they have insured and can potentially raise borrowing costs for cities and other institutions.
Many economists agree that letting Greece off the hook would reward bad fiscal behavior, raise borrowing costs for other countries and eventually destabilize the European monetary union.
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