Finance policy: Fitch confirms US credit rating at "AA+"
The rating agency is maintaining the rating because the economy is showing robust signs. In 2023, Fitch downgraded the credit rating of the world's largest economy by one level from the top rating of "AAA".
Bangalore. Rating agency Fitch has confirmed the credit rating of the USA at "AA+" with a stable outlook. The agency announced this on Thursday, citing the size of the economy, the high per capita income, and the status of the US dollar as the global leading currency. Despite higher tariffs, government spending cuts, and political uncertainty, the US economy has proven to be robust. However, Fitch expects the economic growth to slow down to 1.9 percent in 2026 and 2027, after 2.8 percent in 2025.
Furthermore, inflation remains a cause for concern: the agency expects an average inflation rate of 3.4 percent for 2026, which is above the US Federal Reserve's (Fed) target of two percent. According to Fitch, the overall government deficit is expected to rise to 7.4 percent of the gross domestic product (GDP) in 2026 and remain at this level in 2027.
This is the highest value among all states rated "AA". Higher military and interest costs, as well as increasing spending on state pensions and health insurance, are expected to complicate efforts to reduce the deficit.
Fitch downgraded the credit rating of the world's largest economy in 2023 by one level from the top rating "AAA", citing the expected deterioration in the fiscal situation and repeated disputes over the debt ceiling. Last year, Moody's also withdrew the last "AAA" rating from the USA due to rising debt. S&P Global confirmed its "AA+" rating in June.
Translated by urgent.news from Handelsblatt's report; automated translation may contain errors. Machine-written — it may contain errors, so check the original before relying on it.
