Fitch retains US rating at AAA with a negative outlook. International and Commodity

Fitch retains US rating at AAA with a negative outlook.  International and Commodity

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)

See also  Aramco Shakes Up Leading Administration as It Adjusts to Oil’s Crash

About the author: Sarah Gracie

"Proud social media buff. Unapologetic web scholar. Internet guru. Lifelong music junkie. Travel specialist."

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *