S&P Says US Has Long Way to Go to Regain AAA Status

It has been more than five years since credit ratings firm Standard & Poor’s downgraded the U.S. economy from the prized AAA score to AA — and that is unlikely to change in 2017, Standard and Poor’s chief sovereign rating officer told CNBC Wednesday.
At the time, S&P justified its downgrade on concerns over the rising budget deficit and debt burden. And the world’s largest economy is not doing “very much to actually dispel those concerns,” Moritz Kraemer, chief sovereign rating officer at S&P global ratings told CNBC on Wednesday.

The current policy making “is very uncertain,” he added.

“For a triple-A rated sovereign you’d expect a little more of visibility, you’d expect sort of more continuity in policies,” he said, adding that for now the outlook is stable and any changes are unlikely to take place any time soon.

S&P forecast last December an increase in U.S. gross domestic product (GDP) of 2.4 percent for 2017, up from a projection of 1.6 percent for last year.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.