S&P affirms U.S. ratings at AA+/A-1+ with stable outlook

STANDARD & POOR'S / S&P - NEW YORK. Rating agency S&P on Tuesday affirmed the United States' AA-plus/A-1-plus sovereign rating, citing the country's resilient economy and extensive monetary policy flexibility as the U.S. fights to bounce back from last year's pandemic-fueled slump.

The global rating agency said its outlook for the United States remains stable, reflecting expectations of rapid economic growth as the pandemic recedes, as well as growing fiscal deficits.

"The stable outlook indicates our view that the negative and positive rating factors for the U.S. will be balanced over the next three years," the agency said in a statement.

"We expect that, despite large projected fiscal deficits in the near term, the government will enact countervailing measures to begin addressing longer-term fiscal challenges."

The agency lowered its long-term U.S. rating by one notch below its highest level in 2011 over a widening deficit and higher debt levels.

It touched on those issues again in its latest report, saying that the rating is constrained by high general government debt and fiscal deficits, both of which worsened in 2020 following the economic shock caused by the pandemic.

Two of the three major U.S. credit agencies, Fitch Ratings and Moody's Investors Service, give the United States their top rating of AAA and Aaa respectively.