Standard and Poors, confirm USA rating at AA+/A-1
And keep the outlook at stable (S&P know how to play the game ;-) )
More:
- On US says high general government debt, relatively short-term-oriented policymaking, uncertainty about policy formulation constrain ratings
- Says some of administration's policy proposals "appear at odds" with policies of traditional Republican leadership and historical base
- Stability and predictability of US policymaking and political institutions are high
- Disagreement across & within US political parties resulted in slower decision-making & has limited government's ability to enact forward-looking legislation
- "We don't expect a meaningful expansion or reduction of the fiscal deficit over the forecast period"
- S&P don't expect a meaningful expansion or reduction of US fiscal deficit over the forecast period
- On the Federal Reserve - expect slow and measured increases in the overnight rate as decisions remain data driven
- Political divisions will continue to weigh on government's ability to address public finance pressures in a more timely manner
- Expect continued gains in manufacturing because of competitive labour costs, lower cost of natural gas stemming from shale gas production
- Expects Congress to ultimately rasie or suspend the debt ceiling
- Believe that at present prospects are more remote for deeper fiscal reform
- outlook signals view that negative and positive rating factors will be balanced over the next 2 years
Headlines via Reuters
