WASHINGTON: Ratings agency Fitch on Friday kept its AAA credit rating for the United States on a negative outlook, despite improvements in Washington’s fiscal picture.
Fitch said the country still merited the top-level triple-A rating due to its “strong economic and credit fundamentals”, underpinned by the US dollar’s role as the world’s leading reserve currency. But the negative outlook, which raises the chance of a near-term downgrade, was merited due to what Fitch called “continuing uncertainty” over whether the government would act to reduce its debt over the medium and long term, citing risks in the political battle over raising the country’s debt ceiling and passing a federal budget.
It said the US economic recovery is gaining traction, helped by deleveraging in the private sector, a rebound in housing and a slow fall in unemployment but is still the most heavily indebted country with an AAA rating.
Published in The Express Tribune, June 30th, 2013.
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