S&P affirms U.S. 'AA+' credit rating, stable outlook

S&P Global Ratings has reaffirmed the United States' sovereign credit rating at 'AA+' with a stable outlook, citing the nation's robust economic resilience and strong institutional framework. The credit rating agency highlighted that the U.S. economy is expected to grow at an average annual rate of approximately 2% between 2026 and 2029.

Despite increasing political polarization, S&P believes that the U.S.'s sound institutions and checks and balances will continue to ensure policy stability. The agency also noted that the country's solid tax performance, coupled with increased customs revenue, is expected to mitigate risks of fiscal deterioration. This assessment comes after S&P had previously downgraded the U.S. rating in 2011, underscoring its current confidence in the economy's capacity to navigate domestic and international policy shifts.

Furthermore, S&P anticipates that investments in artificial intelligence (AI) will serve as a significant engine for U.S. economic growth by driving overall capital expenditure. However, the agency also acknowledged a degree of uncertainty regarding AI's potential to deliver substantial long-term productivity gains. The U.S. economy recently showed stronger-than-expected growth in the first quarter, with its GDP revised up to a 2.1% annualized rate, primarily due to a decrease in imports, although this was partially offset by a downward revision in consumer spending.