April 22 (Bloomberg) — The negative outlook on the country's AAA credit-ranking was changed to stable by DBRS Inc. amid declining federal budget deficits and after Congress suspended the nation's debt limit earlier this year until 2015.
The Toronto-based ratings company's adjustment follows decisions by Moody's Investors Service and Standard & Poor's last year to change their outlooks on the United States to stable from negative. S&P stripped the nation of its top grade in August 2011, citing, in part, political discord about the debt limit. Moody's gives the nation its top AAA grade.
The issuer of the world's reserve currency avoided a downgrade from DBRS as stronger economic growth is forecast by a government agency to reduce the budget deficit to a seven-year low as a share of the economy.
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DBRS put the U.S. ranking on review "with negative implications" in October, citing the government's wrangling over raising the federal debt limit.
Congress suspended the limit in February until March 15, 2015, while income tax payments are projected to further postpone the date when the government may exhaust its borrowing authority.
The 2014 deficit will fall to $492 billion this year,the Congressional Budget Office said April 14. That would be 2.8 percent of the economy, almost 32 percent below fiscal year 2013, when it was 4.1 percent. The deficit will shrink again in fiscal 2015 to $469 billion, before rising to about $1 trillion in fiscal years 2022 to 2024, the CBO said.
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