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The key words here being "near term"...
LONDON (Standard & Poor's) June 17, 2009--The 'AAA' long-term rating on the U.S. is not likely to change in the near term, according to a report published by Standard & Poor's Ratings Services, entitled "Credit FAQ: Why It Is Unlikely That The Ratings On The U.S. Government Will Be Lowered In The Near Term."
The long- and short-term ratings on the U.S. government are the highest Standard & Poor's assigns, and the outlook is stable... Currently, 17 of the 124 sovereigns we rate have 'AAA' long-term ratings and stable outlooks. These include close G7 peers, such as Canada, France, and Germany...
"Like all our other ratings, we continually surveil our sovereign rating on the U.S. We evaluate new information pertaining to the U.S.'s creditworthiness as it becomes available," said Standard & Poor's credit analyst Nikola Swann. "That said, despite significant weakening in the near-term economic outlook, projected fiscal deficits, and the high fiscal costs of government support of the U.S. financial sector, we still believe that the U.S. government's credit strengths continue to outweigh its weaknesses," he added.
We believe the U.S.'s key credit strengths include:
-- A high-income, highly diversified economy, with unusually flexible labor and product markets.
-- The unique advantages associated with the U.S. dollar's preeminent role as the world's most used currency....
-- The country's openness to trade and capital flows and experience in adapting to associated fluctuations.
-- The country's stable political system with strong, long-established
institutions, its ability to respond to changing economic and financial
circumstances, and its transparency in policymaking.
The long- and short-term ratings on the U.S. government are the highest Standard & Poor's assigns, and the outlook is stable... Currently, 17 of the 124 sovereigns we rate have 'AAA' long-term ratings and stable outlooks. These include close G7 peers, such as Canada, France, and Germany...
"Like all our other ratings, we continually surveil our sovereign rating on the U.S. We evaluate new information pertaining to the U.S.'s creditworthiness as it becomes available," said Standard & Poor's credit analyst Nikola Swann. "That said, despite significant weakening in the near-term economic outlook, projected fiscal deficits, and the high fiscal costs of government support of the U.S. financial sector, we still believe that the U.S. government's credit strengths continue to outweigh its weaknesses," he added.
We believe the U.S.'s key credit strengths include:
-- A high-income, highly diversified economy, with unusually flexible labor and product markets.
-- The unique advantages associated with the U.S. dollar's preeminent role as the world's most used currency....
-- The country's openness to trade and capital flows and experience in adapting to associated fluctuations.
-- The country's stable political system with strong, long-established
institutions, its ability to respond to changing economic and financial
circumstances, and its transparency in policymaking.
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