S&P affirms 'stable' outlook for U.S. debt and ratings

WASHINGTON (AP) - Standard & Poor's Ratings Services has affirmed its "stable" outlook for U.S. government debt and its ratings for short- and long-term U.S. debt, citing the American economy's strength and the government's flexible economic policies. The rating agency last Friday said it is keeping its rating for short-term U.S. debt at "A-1+" and for long-term debt at "AA+." Federal deficits, while still large, have fallen sharply from the $1 trillion-plus deficits of President Barack Obama's first term. Still, S&P warns - as rating agencies have done frequently in recent years - that the political brinksmanship in Washington over the federal budget looms as a problem. S&P says it expects the deficit to rise toward the decade's end unless there are new measures to raise revenue or cut spending. Published: Tue, Jun 10, 2014