The Hill News

President Obama's administration was "downgraded" following Standard & Poor's reduced rating of U.S. debt, former Massachusetts Gov. Mitt Romney (R) said Monday.

Romney, a top Republican candidate for president in 2012, seized on S&P's decision Monday to issue a "negative" outlook on U.S. debt, reflecting pessimism that lawmakers on Capitol Hill would reach an agreement with Obama on how to rein in long-term debt.

That represents a downgrade from the "stable" rating U.S. debt had previously enjoyed.

"The Obama presidency was downgraded today," Romney said on conservative pundit Sean Hannity's radio show. "And people recognize that he's playing chicken with the U.S. economy."

Republicans have pounced on the S&P report to build momentum for their 2012 budget and more aggressive measures to cut federal spending. Stocks plummeted on the news, eating away over 1 percent in value from each of the major U.S. indexes.

Romn! ey, who's made his business experience a key element in his campaign for the Republican nomination, said that even the downgraded rating in the short term was costly to the U.S. economy.

"The amount of debt we have is backbreaking even now. But if the interest costs are going up, even now, it could be devastating to the U.S. economy," he said. "This is a big deal, and the president continues to pooh-pooh the need to look seriously at our long-term budget."