Standard and Poor's raises US credit outlook from negative to stable

American financial service company Standard and Poor (SandP) have downgraded their ratings for the US economy from AAA to AA+ owing to the nation's improving economy.

According to BBC, the US dollar strengthened with 1.3% against the Japanese yen and 0.2% against the euro, reports BBC.

The US Treasury Department, which called SandP's earlier downgraded ratings as flawed are pleased with the current ratings.

SandP said that the strength of US lies in its resilient economy, its monetary credibility and its currency being world's key reserve currency.

However, it pointed out that the nation's fiscal performance, debt burden and fiscal policymaking are a hindrance in improving the economy.

According to the report, the slow progress is due to the inability of policymakers to address medium-term fiscal because of partisan divide between Republicans and Democrats.

According to the report, SandP is still concerned about US debt despite improve in the ratings.

Chief market analyst at Commonwealth Foreign Exchange in Washington, Omer Esiner, said that the revised rating is not a major catalyst but an indication to the broad stabilization and improvement of the economy.

Moody and Fitch, rival rating company, has kept its rating to AAA for the US, the report added.