Recall they downgraded the US credit rating to AA+ when we had the first debt ceiling debate in August of 2011? From Reuters.com:
(Reuters) – Standard & Poor’s on Monday removed the near-term threat of another credit rating downgrade for the U.S. credit by revising its outlook to stable from negative, citing an improved economic and fiscal outlook.
The change effectively means there is less than a one-third chance of a downgrade in the next two years.
S&P said a key factor to its revision in the U.S. rating outlook was the agreement reached by the U.S. Congress to avoid the fiscal cliff, which threatened some $600 billion in automatic tax increases and spending cuts.
S&P cut the U.S. sovereign credit rating in August 2011 to AA-plus from the highly coveted top grade of AAA, citing political brinkmanship and gridlock in Washington that delayed an otherwise routine raising of the nation’s debt ceiling.
And worthy of note from the same article:
“Few people actually take notice of the rating on the government’s debt. The change makes sense, though, since the trajectory of the deficit has improved,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
“Of course, S&P should not have downgraded the debt to begin with. If the credit rating is supposed to assess the probability of default, it’s silly to give the U.S. government anything but a AAA,” said Jacobsen.