Ways2Capital Reviews : S&P Affirms U.S. Rating, Sees Last Minute Debt Fixes Continuing

S&P Global Ratings affirmed the U.S.’s sovereign credit score at AA+, the assessor’s second-highest grade, citing the country’s “diversified and resilient economy” while noting the impact of ongoing political wrangling on public finances.

S&P kept a stable outlook on the rating and said in a statement that it expects positive and negative factors to be “balanced” over the next two years. The current ranking already factors in the effect of American political divisions on the government’s ability to address public finance pressures, it said.

The ratings firm warned that while it assumed measures to address longer-term fiscal challenges will be enacted “over time,” a failure to do so could lead to a negative rating action. Conversely, it said the score could be raised if S&P sees “signs of more effective and proactive public policymaking.” S&P expects U.S. economic growth of about 3% this year and 2.5% in 2019.

Treasuries were little changed after the S&P announcement Tuesday, with the 10-year yield holding steady at around 2.88%, while the dollar maintained its gains for the day versus major developed market peers.

The U.S. has been rated AA+ since 2011, when S&P stripped the nation of its top AAA rating. The country currently carries top credit scores at both Moody’s Investors Service and Fitch Ratings.

For Quick Trial – 8962000225 ✔
or mail us here: info@ways2capital.com
✆ - 0731-6626191 | Toll Free - 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717
Share on Google Plus Share on Pinterest

About Bhoomi Desai