Skip to main content

Standard & Poor’s upgrades U.S. credit rating

Standard & Poor’s rating agency upgraded the long-term outlook on America’s credit rating from negative to stable, citing debt reduction through tax hikes and expenditure cuts and increasing private-sector contributions to growth.

The rating agency reaffirmed the country’s AA+ long-term and A-1+ short-term sovereign credit rating Monday, leaving the top-shelf short-term credit rating unchanged.

S&P expects the government deficit to fall to about 6 percent of gross domestic product this year, down from 7 percent in 2012, and to slightly less than 4 percent in 2015.

The agency said credit strengths include a resilient economy, monetary credibility and the U.S. dollar’s status as the world’s reserve currency. The country’s weaknesses include its fiscal performance, debt burden and the ineffectiveness of fiscal policy-making.

“We view U.S. governmental institutions (including the administration and Congress) and policymaking as generally strong, although the ability of elected officials to address the country's medium-term fiscal challenges has decreased in the past decade due to what we consider to be increased partisanship and fundamentally opposing views by the two main political parties on the optimal size of government,” the agency wrote in a statement, referencing recent budget policy impasses.

However, the agency says it sees “tentative improvements,” including the 2012 year-end deal on the fiscal cliff that allowed for fiscal tightening and the expiration of tax cuts on high-income earners.

“Although we expect some political posturing to coincide with raising the government's debt ceiling, which now appears likely to occur near the Sept. 30 fiscal year-end, we assume with our outlook revision that the debate will not result in a sudden unplanned contraction in current spending — which could be disruptive — let alone debt service,” the agency wrote.

Click here for the full release.

Related

1_WHALESACTION

NMMA: Proposed Speed Rule an ‘Existential Threat’ to Industry

The association is calling on every marine brand, employee and boat owner to file public comment by Oct. 31 over a sweeping regulation to protect North Atlantic right whales.

1_AXOPAR

Axopar and Nimbus Renew Agreement

The boatbuilders have entered an agreement whereby Nimbus Group will retain exclusive rights to sell Axopar boats on the Swedish market.

1_IAN

Hurricane Ian Leaves Devastation in Florida

The storm left a wide swath of destruction, heavily impacting marine interests from Tampa Bay to Marco Island.

Norm

Email Is Your Ticket to Holiday Sales

Developing an effective email campaign can bolster sales and help fill winter coffers at your dealership.

1_NMRA

NMRA Presents Annual Awards

Edson CEO Will Keene and ComMar Sales president Tim Conroy were recognized for their contributions to the marine industry.

1_ PULSE.PING.2

DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.

1_EPROPULSION

EPropulsion, Mack Boring Partner with Crest

Pontoon builder Crest will use an ePropulsion Navy 3.0 Evo electric outboard motor and an E175 battery for its 2023 Current model.

1_BENETEAU

Beneteau Reports Significant H122 Growth

The company reported that its revenue grew 8.6 percent and income increased by 30 percent during the first half of 2022.