Standard and Poors rating agency confirms Australia is higher rated than the US ;-)
- US 'AA+/A-1+' sovereign ratings affirmed; outlook remains stable
- S&P says sovereign rating on the US is based on its strong institutions, diversified and resilient economy, extensive monetary policy flexibility
- says sovereign rating on US is also based on unique status as the issuer of the world's leading reserve currency
- says stable outlook on US indicates view that negative and positive rating factors for the US will be balanced over the next three years
- S&P also expect US's institutional checks, balances, strong rule of law, free flow of information to contribute to stability in economic policies
More (these headline summary points are via Reuters)
- outlook for US remains stable, reflecting expectation of rapid economic growth this year and next as the pandemic recedes
- says ratings for US are constrained by high general government debt and fiscal deficits, both of which worsened in 2020
- expect gradual withdrawal of unprecedented US fiscal stimulus to stabilize net general govt debt burden around 110% of GDP in next couple of years
- says US dollar's status as world's premier reserve currency, and size and depth of the US financial market, should sustain policy flexibility
- says expect US govt will enact countervailing measures to begin addressing longer-term fiscal challenges
- ratings for US are constrained by fiscal weaknesses and high net general government debt, which is expected to reach 107% of GDP in 2021
- says rapid economic policy response to pandemic illustrates the ability of u.s. governing institutions to undertake timely measures during crisis
