S&P raises US outlook to ‘stable’

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.

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