The White House quickly disputed Standard & Poor’s decision to  downgrade the United States’ AAA credit rating saying there was a $2 trillion error in the credit agency’s analysis. It is the first time in the nation’s history that its top notch rating was lowered, putting a cloud over President Barack Obama’s re-election hopes in 2012 with the distinction as the first chief executive to have presided a credit downgrade.

The move came just days after U.S. legislators resolved a major gridlock on Capitol Hill that led to a law that averted a default and cut government spending by more than $2 trillion. The agreed budget cuts, however, did not satisfy S&P.

U.S. Treasury officials noticed there was an error in S&P’s calculations of the U.S. government’s 10-year deficit figures by $2 trillion and urged the credit agency to reconsider. S&P scrambled throughout Friday afternoon even holding an emergency conference call with several of their committee members in Europe just as when the markets in the U.S. were heading toward the closing bell. After lengthy discussions, the agency eventually affirmed their original decision and downgraded the country’s rating by one notch down to AA+.

It was evident that there was anger and disappointment with the S&P’s decision coming from the White House and the Treasury Department given that there was a question on the accuracy of the calculations.

Several Republican presidential candidates immediately hit Mr. Obama following the downgrade including former governor Mitt Romney of Massachusetts and Congresswoman Michelle Bachmann of Minnesota, two of the current frontrunners for the GOP presidential nomination.

House Speaker John Boehner, also a Republican and co-engineered the compromise deal that passed Congress earlier in the week described the downgrade as a wake-up call for Democrats in Washington that they should not “tinker around the edges” with the nation’s debt problem. He added that the downgrade is a consequence of Washington’s out-of-control spending for many decades. Conservative senator Jim DeMint likewise called for the resignation of Treasury Secretary Timothy Geithner.

Both liberal and conservative media polls point to Mr. Obama’s sliding job approval rating and the downgrade could further hurt the president’s chances come next year’s November elections as it may lead to more economic uncertainty brought by rising borrowing costs and not no mention the wounded American pride.

Mr. Obama left for the Camp David presidential retreat in Maryland just hours before the announcement of the downgrade was made public. He did not provide an immediate response.