Fitch: Downgrades US Rating to AA+, Previously AAA-rated
On Tuesday, August 1st, one of the three major rating agencies, Fitch Ratings, downgraded the long-term foreign currency debt rating of the United States from AAA to AA+, with a stable outlook. The downgrade of the US rating by Fitch reflects the expected deterioration of the US fiscal situation over the next three years, the overall high government debt burden, and the continuous growth of the debt.
On Tuesday, August 1st, one of the three major rating agencies, Fitch Ratings, downgraded the long-term foreign currency debt rating of the United States from AAA to AA+, with a stable outlook.
Fitch's downgrade of the US rating reflects the expected deterioration of the country's fiscal situation over the next three years, with a high overall government debt burden that will continue to grow.
Fitch predicts that by 2024, the US general government deficit will account for 6.6% of GDP, further expanding to 6.9% of GDP in 2025. The proportion of the US general government deficit to GDP is expected to rise from 3.7% in 2022 to 6.3% in 2023.
In addition, Fitch expects the Federal Reserve to raise interest rates by an additional 25 basis points in September, pushing the federal funds rate to a range of 5.5% to 5.75%.