s and p downgrades us...., page-7

This downgrade has massive implications for the international financial system.

Interbank lending, collateral obligations are based on AAA US Treasuries. In addition it has implications for banks' capital adequacy ratios that hold AAA US treasuries.

US Treasuries are a bedrock of the international financial system.

S&P has effectively downgraded the international financial system.

I wonder if S&P has really thought this through.