Neutral Reinforcement: S&P Takes Charm Offensive Up A Notch

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Standard & Poor's campaign to get back into the good graces of the U.S. government continues.

Standard & Poor's on Monday revised its credit outlook on the United States government to stable from negative, citing Congress's avoidance of the year-end 2012 "fiscal cliff" and the higher-than-expected tax receipts that followed.

Additionally, the ratings agency, the only one to have cut the United States from the coveted AAA status, said it does not expect the debate later in 2013 regarding a raising of the debt ceiling to result in "a sudden unplanned contraction in current spending - which could be disruptive - let along debt service…."

The chances of a ratings downgrade is now "less than one in three" as improvements in tax receipts and economic performance are helping to bring down the country's debt levels.

S&P revises U.S. credit outlook to 'stable' from negative [Reuters]
Revived GM Welcomed Back Into the S&P500 [Bloomberg]

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