According to Economics of Contempt who worked with them, S&P is stupid.

Example:

With S&P, it got to the point where we were constantly saying, “that’s a good point, but is S&P smart enough to understand that argument?” I kid you not, that was a hard-constraint in our game-plan. With Moody’s and Fitch, we at least were able to assume that the analysts on our deals would have a minimum level of financial competence.

I’ve seen S&P make far more basic mistakes than the one they made in miscalculating the US’s debt-to-GDP ratio. I’ve seen an S&P managing director who didn’t know the order of operations, and when we pointed it out to him, stopped taking our calls. Despite impressive-sounding titles, these guys personify “amateur hour.” (And my opinion of S&P isn’t just based on a few deals; it’s based on countless deals, meetings, and phone calls over 20 years. It’s also the opinion of practically everyone else who deals with the rating agencies on a semi-regular basis.)

It is really apparent that the same 'elite' that staff our media outlets, staff many other sectors of our society.

When I read that, it all became clear. This is Obama's payback to S&L for dissing him. It's meant to make trouble, and maybe embarrass a few people. But nobody's going to be wearing orange jumpsuits.

In other words, this is bullshit.