S&P maintains credit ratings for U.S. with “stable” outlook

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Standard & Poor’s said on Friday that it maintained its current AA+/A-1+ rating for U.S. sovereign credit with “stable” outlook.

The rating service said in a statement that because of the country’s strong economy, policy flexibility and its status as the world’s leading issuer of the reserve currency, it affirmed its AA+ long-term and A-1+ short-term unsolicited sovereign credit ratings on the U.S.

The firm also said that it could increase the rating to AAA if it finds greater bipartisan cooperation in Washington on fiscal policy and containing government debt. In August 2011, the U.S. lost its AAA rating.

The prospect of raising the credit rating could result from implementation of medium-term fiscal policy measures or stronger economic growth trajectory, according to S&P

The stable outlook by S&P on the U.S. suggests that there is a possibility of less than 33 percent for a rating change in the next two years, the statement said.

The S&P statement comes after the Labor Department’s nonfarm payrolls report released Friday, showing that U.S. employment had swung back to a pre-recession high.

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