WASHINGTON (dpa-AFX) - S&P Global maintained its 'AA+' credit rating on the U.S., as the increase in revenue from higher tariffs is expected to offset weaker fiscal outcomes.
The outlook on the ratings remained stable, S&P said. The outlook suggested that although a meaningful improvement in fiscal deficit outcomes are unlikely, a persistent deterioration is not expected for the next several years.
U.S. President Donald Trump's administration has gained congressional approval of its signature tax and spending bill, reflecting key policy priorities, and it continues to overhaul the U.S.'s international trade regime, said S&P.
The agency cited that the sovereign ratings on the US are underpinned by the wealth, resilience, and diversity of its economy. Moreover, its institutional strengths, extensive economic policy flexibility and its unique status as the issuer of the world's leading reserve currency support credit ratings.
However, S&P observed that the ratings are constrained by fiscal weaknesses, namely high net general government debt and deficits.
Net general government debt, which was at 94 percent of GDP in 2024, is likely to surpass 100 percent in 2028, the agency said.
Average annual real GDP growth is forecast to decelerate this year to 1.7 percent and to 1.6 percent in 2026, as labor force growth slows alongside the fall in immigration and as tariff-policy uncertainty subsides.
Consumer price inflation is forecast to average 2.9 percent in 2025 and to decline toward 2 percent by 2028.
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