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Aspiring to AAA seems as simple as ABC for Google owner Alphabet

Alphabet the owner of Google, now has a Standard & Poor’s credit rating on a par with the United States of America

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Upgraded by Standard & Poor's

Alphabet (NASDAQ:GOOGL) the owner of Google, now has a Standard & Poor’s credit rating on a par with the United States of America.

S&P moved on Wednesday to upgrade the stock to double A plus – which is the level to which it downgraded the USA in August 2011.

The rating reflects Alphabet’s consistently strong operating performance, despite a challenging and evolving digital advertising market, while it continues to maintain a conservative financial policy and strong liquidity profile,” S&P said.

It also means that on A&P metrics at least, Alphabet is just one notch away from the coveted triple A which is currently enjoyed by only two US stocks: Microsoft (NASDAQ:MSFT) and John & Johnson (NYSE:JNJ).  US oil group ExxonMobil (NYSE:XOM) was stripped of its long-held triple-A rating last year.

Ratings are key for things like measuring the creditworthiness of a stock and determine at what rate of interest companies can borrow funds. The higher the rating, ceteris paribus, the lower the borrowing costs.

Alphabet shares were up 0.3% at $851.36 in late Wednesday trading.

Quick facts: Alphabet Inc

Price: 1347.83 USD

NASDAQ:GOOG
Market: NASDAQ
Market Cap: $929.58 billion
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