WASHINGTON - CREDIT ratings agency Standard & Poor's on Wednesday said the US government was likely to keep its top triple-A credit rating for the foreseeable future, despite a severe recession.
S&P said the US government has the highest long- and short-term ratings it assigns and 'the 'AAA' long-term rating on the US is not likely to change in the near term.'
'Despite significant weakening in the near-term economic outlook, projected fiscal deficits, and the high fiscal costs of government support of the US financial sector, we still believe that the US government's credit strengths continue to outweigh its weaknesses,' said Standard & Poor's credit analyst Nikola Swann.
The S&P report came as the world's largest economy grapples with a severe recession that began in December 2007.
The government has injected hundreds of billions of dollars into the economy and the financial system to battle a global economic and financial crisis that originated in the US home mortgage sector.
Mr Swann said the country's key credit strengths include a high-income, a highly diversified economy with 'unusually flexible' labour and product markets, as well as the unique advantages linked to dollar's role as the world's most used currency.
The analyst also cited the country's openness to trade and capital flows and its stable political system, highlighting 'strong, long-established' institutions, a responsiveness to changing economic and financial conditions and transparency in policymaking. -- AFP
