S&P affirms ‘stable’ outlook for US debt, ratings

WASHINGTON (AP) — Standard & Poor’s Ratings Services has affirmed its “stable” outlook for U.S. government debt and its ratings for short- and long-term U.S. debt, citing the American economy’s strength and the government’s flexible economic policies.

The rating agency on Friday said it is keeping its rating for short-term U.S. debt at “A-1+” and for long-term debt at “AA+.”

Federal deficits, while still large, have fallen sharply from the $1 trillion-plus deficits of President Barack Obama’s first term. Still, S&P warns — as rating agencies have done frequently in recent years — that the political brinksmanship in Washington over the federal budget looms as a problem. S&P says it expects the deficit to rise toward the decade’s end unless there are new measures to raise revenue or cut spending.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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