S&P Global Ratings affirmed the sovereign ratings of the U.S. at ‘AA+’ with ‘stable’ outlook on Tuesday.
The agency maintained the ratings citing its strong institutions, diversified and resilient economy, coupled with monetary policy flexibility, and unique status as the issuer of the world’s leading reserve currency.
However, S&P observed the ratings were constrained by high general government debt and fiscal deficits, both of which worsened last year following the economic shock caused by the pandemic.
Despite large projected fiscal deficits in the near term, the agency expects the government to introduce countervailing measures to begin addressing longer-term fiscal challenges.
The ‘stable’ outlook indicates that the negative and positive rating factors for the U.S. will be balanced over the next three years.
S&P sees rapid economic growth this year and next as the pandemic recedes and the economy benefits from unprecedented fiscal and monetary stimulus.