Fitch Ratings affirmed US Long-Term Foreign Currency Issuer Default Rating (IDR) at “AAA” with a “negative” outlook. It said, the rating is “supported by structural strengths that include the size of the economy, high per capita income and a dynamic business environment.” It’s “debt tolerance” is considered “higher” than that of other AAA sovereigns.
The negative outlook reflects “ongoing risks to the public finances and debt trajectory, notwithstanding the improvement in Fitch’s fiscal and debt projections since its last review”. Key variables including “real interest rates and fiscal deficits may not follow the expected path, potentially creating downside risk.”
