The agreement between Republicans and Democrats raised thenation’s debt ceiling until 2013 and threatens automaticspending cuts to enforce the $2.4 trillion in spendingreductions over the next 10 years.
Even with the accord, S&P said the U.S.’s debt may rise to74 percent of gross domestic product by year-end, to 79 percentin 2015 and 85 percent by 2021.
S&P also changed its assumption that the 2001 and 2003 taxcuts enacted under President George W. Bush would expire by theend of 2012 “because the majority of Republicans in Congresscontinue to resist any measure that would raise revenues.”