Fitch cuts US credit rated to AA+ from AAA after his debt limit standoffs

Fitch has downgraded the US government's top credit rating from AAA to AA+, citing expected fiscal deterioration over the next three years and a growing general government debt burden. Fitch Ratings has affirmed the US's 'AAA' long-term rating with a stable outlook, citing the country's diversified and resilient economy, as well as its exceptional credit and monetary flexibility. This comes after Fitch placed the US's rating on watch for a possible downgrade in May due to downside risks. The rating agency expects US government debt to decline gradually after peaking in 2021 at about 109% of GDP. However, Fitch noted that a materialisation of downside risks to growth, fiscal sustainability, or financial stability would put downward pressure on the rating.

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