US AA+ rating affirmed by S&P, outlook stable

The Global credit rating agency S&P Global Ratings has affirmed the United States' sovereign credit ratings at 'AA+/A-1+' with a stable rating outlook, amid the ongoing coronavirus outbreak, Reuters News reported:

• S&P says US 'AA+/A-1+' sovereign ratings affirmed; outlook remains stable.
• Says stable outlook indicates S&P's view that negative & positive rating factors for the US will be balanced over next 2-years.
• Says US ratings constrained by high general government debt & fiscal deficits, both likely to worsen this year after shock from coronavirus.
• Says expect US economic recovery in 2021, which will partly compensate the loss of output this year, and continued Gross Domestic Product (GDP) growth afterward.
• Says expect continued political disputes about implementation of u.s economic & other policies in lead-up to national elections in November.
• Says expect continuity in recent economic measures aimed at mitigating effects of pandemic, regardless of election outcome.
• Says expect the general government deficit will decline below 5% of GDP by 2022.
• Says expect US economy to contract around 1.3% this year before recovering by 3.2% in 2021 and 2.5% in following year.
• Says expect US's institutional checks & balances, strong rule of law, to support stability & predictability of economic policies.

The US government's debt and fiscal deficits are likely to worsen this year after the "economic shock" caused by the pandemic, S&P said. Last week, Fitch had affirmed its United States rating.

US market's chasing a bid in oil prices

Markets took a rest bite from the COVID-19 debacle overnight and instead, the price of oils rally supported heavyweights such as Chevron and Exxon in the Dow, helping to send the index around 450 points higher. More on that here: Wall Street Close: Chevron and Exxon helped to lift DJIA 450 points

However, this rating is further good news in markets that are in desperate need of it. However, what would it take to make the outlook unstable? This is a fluid situation and the US has supposedly not even met the peak of the crisis yet, despite the US now having just under 240,000 infections and 5,798 deaths according to the Johns Hopkins university tracker.