S&P Says US Has Long Way to Go to Regain AAA Status

January 11, 2017 Share Print 0

It has been more than five years since credit ratings firm Standard & Poor’s downgraded the U.S. economy from the prized AAA score to AA — and that is unlikely to change in 2017, Standard and Poor’s chief sovereign rating officer told CNBC Wednesday.
At the time, S&P justified its downgrade on concerns over the rising budget deficit and debt burden. And the world’s largest economy is not doing “very much to actually dispel those concerns,” Moritz Kraemer, chief sovereign rating officer at S&P global ratings told CNBC on Wednesday.

The current policy making “is very uncertain,” he added.

“For a triple-A rated sovereign you’d expect a little more of visibility, you’d expect sort of more continuity in policies,” he said, adding that for now the outlook is stable and any changes are unlikely to take place any time soon.

S&P forecast last December an increase in U.S. gross domestic product (GDP) of 2.4 percent for 2017, up from a projection of 1.6 percent for last year.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.