Ratings agency Standard & Poor’s reaffirmed its top sovereign debt rating for the U.S. despite the country’s lack of action to contain its growing budget deficit, according to Reuters. On Thursday, S&P managing director Scott Bugie said, “We have a stable outlook so don’t expect a downgrade in the short- to medium-term on the U.S.” The statement comes as a reassurance after the agency cut its credit rating for Japan in January for the first time in nearly a decade, citing mounting debt.
Rival agency Moody’s Investors Service has warned the U.S. that its lack of action on the budget deficit was increasing the chances of the country receiving a negative outlook for its top credit rating. Bugie acknowledged that there has been “a slow but continual build of credit risk,” but he added “In our view it is not a fast moving issue.” According to The Wall Street Journal, U.S. politicians are debating whether to raise the current national debt ceiling, weighing the risk of a default against the need to limit government spending.
Click here to read the story on S&P’s outlook from Reuters.
Click here for coverage of the debt ceiling from The Wall Street Journal.