S&P upgrades US credit outlook to stable

Standard & Poor\'s Ratings Services, one of the world\'s largest credit rating agencies, revised U.S. outlook on the long-term rating to stable from negative on Monday, based on the strengths of the U.S. economy and monetary system. The agency also affirmed its \'AA+\' long-term and \'A-1+\' short-term unsolicited sovereign credit ratings on the United States in a new release. \"Our sovereign credit ratings on the U.S. primarily reflect our view of the strengths of the U.S. economy and monetary system, as well as the U.S. dollar\'s status as the world\'s key reserve currency,\" S&P said. \"The stable outlook indicates our appraisal that some of the downside risks to our \'AA+\' rating on the U.S. have receded to the point that the likelihood that we will lower the rating in the near term is less than one in three,\" S&P said. The agency added: \"We do not see material risks to our favorable view of the flexibility and efficacy of U.S. monetary policy. We believe the U.S. economic performance will match or exceed its peers\' in the coming years. We forecast that the external position of the U.S. on a flow basis will not deteriorate.\" Meanwhile, S&P believed that its current \'AA+\' rating on U.S. long-term credit already factored in a lesser ability of U.S. elected officials to react swiftly and effectively to public finance pressures over the longer term in comparison with officials of some more highly rated sovereigns and they expect repeated divisive debates over raising the debt ceiling. S&P downgraded U.S. credit rating from \'AAA \' to \'AA+\' in August 2011 and had kept the nation\'s credit outlook at \"negative\" since then, as U.S. deadlocked debt ceiling debate triggered concerns over its long-term debt default risk. S&P\'s major peers Moody\'s and Fitch currently maintained their triple-A ratings on the U.S. sovereign credit.