If the U.S. was a corporation it would have already reached junk status.

(CNSNews.com) — U.S. federal debt could potentially be downgraded to junk status by 2030 if the government does not significantly reform entitlement spending, according to a study by Standard & Poor’s, one of the three Wall Street credit ratings agencies.

The S&P study, which shows the effects of rising entitlement-driven federal debt on the federal budget and debt rating, indicates that if entitlement costs are not brought under control soon, America will see its coveted AAA debt rating evaporate.

S&P said that the weight of retiring Baby Boomers would drive government debt to unsustainable levels, forcing the ratings agency to severely downgrade its U.S. debt rating.

“[I]n our hypothetical Base Case Scenario (absent policy and other changes), these drivers could potentially raise U.S. net general government debt to a level we would normally associate with a ‘A’ rated sovereign [government] by as early as 2020,” S&P said in the study, released June 21.

“By 2025, it could be ‘BBB’, and by 2030, it could hypothetically be revised to speculative grade.”