NEW YORK, Oct. 18 (UPI) -- Credit raters Standard & Poor's said Monday that the credit rating of Canada, France, Germany, Britain, and the United States remained unchanged at AAA.
The New York-based S&P said that the five countries' creditworthiness "remains secure against most foreseeable risks, although distinct challenges still face each sovereign."
The agency found Britain, Canada, and the United States more likely to grow over the next few years as "they are better positioned than France or Germany to achieve strong growth due to their more flexible and mobile labor forces, lower tax burdens, and greater freedom in coordinating monetary and economic policy," said credit analyst Philippe Sachs.
But at the same time, Sachs cautioned against the ballooning debt of the United States.
"We project that the external debt of the U.S. net of liquid assets will reach 365 percent of current account receipts in 2005, one of the highest ratios of all 105 sovereigns rated by Standard & Poor's," Sachs said. "The risks of these external imbalances are borne by creditors and the debtor alike," he added.
Italy and Japan, which make up the remaining two Group of Seven industrialized countries, are rated at AA-minus and thus not included in the latest S&P report.
