Views Article – Sharenet Wealth

News, North America

Fitch revises U.S. outlook to ‘negative’ from ‘stable’; affirms AAA rating

(Adds details on outlook revision)

July 31 (Reuters) – Ratings agency Fitch on Friday revised its outlook on the United States to “negative” from “stable”, citing deterioration in the country’s public finances and the absence of a credible fiscal consolidation plan.

High fiscal deficits and debt that were already rising before the coronavirus crisis have started to erode the traditional credit strengths of the United States, the agency said, while affirming its “AAA” rating.

“There is a growing risk that U.S. policymakers will not consolidate public finances sufficiently to stabilize public debt after the pandemic shock has passed,” Fitch said in a statement.

The United States had the highest government debt of any AAA-rated sovereign heading into the coronavirus crisis, the agency said, adding that it expects general government debt to exceed 130% of gross domestic product by 2021. (Reporting by Nishara Karuvalli Pathikkal in Bengaluru; Editing by Anil D’Silva)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.