S&P Affirms US Debt Rating at AA+

Credit ratings agency Standard & Poor's (S&P) confirmed on Tuesday,  the score on US government debt at AA+, with expectations of a rapid recovery to the economy, which was severely hit by the pandemic.

S&P said that with the 'unprecedented fiscal and monetary stimulus,  including a massive $1.9 trillion package approved last week', it expects rapid economic growth in 2021-22 as the pandemic retreats.

S&P said that the outlook for US debt is stable, as factors, both negative or positive, are expected to be "balanced over the next three years."

However, it warned that "ratings are constrained by high general government debt and fiscal deficits, both of which worsen in 2020 after the economic shock from the COVID-19 pandemic."

According to a recent estimate by the Congressional Budget Office (CBO), the US will see its second largest budget deficit since World War II this year, rising to $3.1 trillion.