According to the agency, the US sovereign rating is supported by structural forces including the size of the economy, high per capita income and a dynamic business environment.
“The US benefits from the issuance of the US dollar, the world’s foremost reserve currency, and the exceptional financing flexibility associated with it, which has been highlighted once again by developments after March 2020. Fitch considers debt tolerance higher than other AAA-rated sovereign countries,” the ruling said.
Furthermore, according to the agency, the negative outlook on credit ratings reflects ongoing risks to public finances and the trajectory of the country’s debt, despite improvements in Fitch’s fiscal and debt projections since the last review.
“The dynamics currently point to a broad stabilization of the debt ratio at a level where a more significant increase could lead to a fall. However, key variables, including real interest rates and the fiscal deficit, may not be getting in the way. Expected, negative Creating side risk. In light of developments following the past review and future risks, a decline in governance poses additional risks to the ratings,” Fitch says.
(With content originally published on Valor Pro, Valor’s real-time news service)
Henry Lawson is a contributor at Sproutwired.com, covering a wide range of topics including news, politics, business, technology, sport, entertainment and lifestyle. He focuses on delivering clear, accurate and reader-friendly reporting that helps audiences stay informed about current affairs and important developments. With an emphasis on useful information and balanced coverage, Henry aims to highlight stories that matter most to readers, providing context and insight in a straightforward and accessible way.
