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S&P affirms US sovereign rating at AA+ with stable outlook

S&P affirms US sovereign rating at AA+ with stable outlook

S&P Global Ratings has affirmed the United States’ long‑term sovereign credit rating at AA+ with a stable outlook. Bloomberg reports that the decision reflects the high resilience of the American economy and the expectation that budget deficits will remain elevated but stable. Analysts at the agency emphasize that the US economic system will continue to generate solid tax revenues, supported by steady growth and tariff income. This should help stabilize public finances over the coming years, offsetting current macroeconomic risks.
S&P projects that the net government debt of the United States will approach 100% of gross domestic product over time. The agency cites rising interest costs on debt servicing and higher spending related to an aging population as the primary drivers of this trend. Experts also pointed to deep political polarization in Washington, which makes bipartisan efforts to reduce the deficit extremely difficult. Nevertheless, the agency expects Congress to continue to raise or suspend the debt limit in a timely manner, mindful of the destructive consequences a potential default would have for global markets.
The ratings firm separately warned that the sovereign rating could come under pressure over the next two years if lawmakers are unable to cut spending or offset lower revenues from recent tax‑code changes. All three major global ratings agencies currently assign the United States a second‑highest credit status with stable outlooks. It is worth recalling that S&P was the first agency to strip the US of its top AAA rating in 2011 amid a protracted political standoff and worsening long-term fiscal prospects.

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