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What does it mean to “downgrade the debt” of an entity with the most powerful military (by far) in the world? And with an economy that is only challenged in size by a communist state with four times the population burden? Downgrade compared to what?
> What does it mean to “downgrade the debt” of an entity with the most powerful military (by far) in the world?

The same as downgrading anyone else's debt, reduce a rating that notionally represents your firm’s estimate of the probability the debt will be paid according to it's terms.

> Downgrade compared to what?

“Downgrade” by definition is relative to a previous rating of the same thing.