Financial rating agency S&P on Tuesday confirmed the AA + rating of the U.S. long-term debt, which is said to be considered highly reliable and with a consistent outlook, indicating that there is no intention to change. Evaluate immediately.
This rating “(Country) solid institutions (based on diversified and flexible economy, excellent flexibility of monetary policy and its position as the world’s first reserve currency issuer”), Describes the company in a press release, however mentions “Public debt and public deficits (…) worsen in 2020 following the economic shock caused by the epidemic”. The third stimulus package, valued at $ 1.9 trillion, has been approved and signed by President Joe Biden.
“Budget weakness” but “quick political response”
The outlook was consistent as S&P expected “Rapid economic growth this year and the next epidemic slowing the economy to unprecedented financial and monetary support”. Within a year of the start of the crisis, successive stimulus programs have poured an unprecedented $ 5.5 trillion into the US economy. However, S&P specifies “Budget weakness” The country, as well as its debt “High”It is expected to reach 107% of GDP by 2021. But “The rapid political response to the epidemic illustrates the ability of US government agencies and political power to take swift and strong action during a crisis, as seen in 2008.”, Describes the company.
S&P had already confirmed the estimate in April, the day after the first stimulus plan, the CARS Act, was voted on, at $ 2.200 billion, the highest in U.S. history. Fitch, on the other hand, downgraded its outlook from stable to negative in July. “Continued decline of public funds”. However, he maintained an “AAA” rating, which is excellent.