S&P has raised the outlook on the US from negative to stable. The credit rating of the world’s largest economy was cut down to AA+ from AAA by S&P in August 2011.
The raise in the outlook comes amidst:
- A public debt of about $16.7 trillion, which brings the debt to gdp ratio to around 105%
- A lawsuit against S&P by the US DoJ with several allegations, including defrauding investors in the residential mortgage backed securities and collateralized debt obligations
Shouldn’t be late before we may see a settlement between DoJ and S&P.