The FINANCIAL — Standard & Poor’s Ratings Services affirmed its credit rating on the U.S. at double-A-plus, one notch below the prestigious triple-A, citing factors including the nation’s diversified and resilient economy, according to Nasdaq.
The ratings firm said high general government debt and “a lack of political cohesion among the main parties in Congress” constrain the ratings.
S&P maintained its stable outlook, reflecting its view that there is less than a one-in-three chance that S&P will change the rating in the next two years.
S&P said it expects 2.4% growth for the U.S. this year. S&P noted ongoing improvement in the labor market and the housing sector, but said “wage growth has been modest for most households.”
“Despite the decline in shale energy investment caused by lower global oil prices, we expect continued revival in manufacturing because of competitive labor costs and the lower cost of natural gas stemming from increased shale gas production,” S&P said.
The ratings firm stripped the U.S. of its top credit rating in August 2011, a move that indicated S&P no longer believed U.S. Treasury debt deserved to be considered among the safest investments in the world. The U.S. had held S&P’s top rating for 70 years.
The other two main raters, Moody’s Investors Service and Fitch Ratings, still have the U.S. at triple-A. Fitch affirmed its rating in April, citing the nation’s financing flexibility and liquid capital markets.
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