A New Era for Business Valuations

The U.S. Government has had a AAA credit rating for the last 70 years, but that ended on Friday, August 5, 2011. With Standard & Poors downgrading the United States debt rating to AA+ from AAA conducting a business valuation engagement takes on new risks. The use of U.S. Government debt as a risk free rate has been the industry standard when using the income approach with the Ibbotson Build-Up method, the Capital Asset Pricing Model (CAPM), and Duff & Phelps Equity Risk Premium model.
The questions now before us include, since U.S. Treasury securities are no longer considered to be risk free can they still be used in the pricing models? If they are used what adjustments should be made to account for the lower debt rating? If they are not used, what securities would provide a better indication of a risk free rate? Because business valuation reports are always subject to being challenged in court it will be necessary to address these questions in any reports issued after 8/5/2011.
I would like to get feedback from other forensic accountants doing business valuations as to your thoughts on this matter.

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