S&P holds US credit rating unchanged

Standard and Poor's says a "polarised policymaking environment" in the US has prevented it from getting a credit rating upgrade.

Standard and Poor's has held its US debt rating unchanged at AA+, nearly three years after dealing Washington a historic cut to its top-flight rating.

S&P said the rating outlook was only stable, saying the country's "polarised policymaking environment and high general government debt and budget deficits" prevent a return to AAA status.

"A higher degree of political brinksmanship in recent years - that complicates the policy decision-making process, resulting in a somewhat weaker ability to enact reform - constrains the ratings," S&P said.

It also pointed to the doubling of government debt since 2007, and its expectations that while US borrowing have slowed significantly with an improved budget picture, debt growth is likely to pick up again at the end of this decade.

At the same time, S&P said the current ranking holds up given the resilience of the US economy, policy flexibility, and the unique status of the US dollar as the world's leading reserve currency.


Share

1 min read

Published

Updated


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world