S&P affirmed the “AA+/A-1+” sovereign credit ratings on the US. Outlook remained “stable”, as negative and positive rating factors for the U.S. will be balanced over the next three years”.
In the upside scenario, rating could be raised over the next two years if “effective and proactive public policymaking contributes to favorable economic outcomes. Sustained economic growth, along with measures to address long-term fiscal challenges, could slow the recently high annual increases in the general government’s net debt as a share of GDP.
Conversely, in the downside scenario, “unexpectedly negative political developments in the next two years that reduce the resilience of American institutions, the economy, and the effectiveness of long-term policymaking or jeopardize the dollar’s status as the world’s leading reserve currency could lead to a negative rating action.”
