Prime Minister's Economic Advisory Council Chairman C Rangarajan today said the downgrade of the US sovereign rating will negatively impact exports and moderate capital flows into the country. In a statement, Mr Rangarajan said more than the downgrade, the slow pace of recovery in the US will be the impact for the rest of the world . He said, in the first half of the current calendar year, the growth rate in the USA was 1.5 per cent. Mr Rangarajan said, perhaps for the year as a whole, other growth rates may not be much higher than that.