Fitch keeps US credit rating on negative watch

0
307

Despite the “debt limit” agreement, Fitch continues to keep the US credit rating on negative watch.

Fitch Ratings, the international credit rating agency, stated that the country’s credit rating continues to be negative, considering the results of the recent policy of escalating tensions and the outlook for the medium-term financial and debt trajectory, despite the fact that the debt limit crisis has been overcome in the United States.

In the statement made by Fitch, it was stated that despite the debt limit agreement, the US credit rating of “AAA” continues to be monitored for a possible downgrade.

“Although the resolution of the US debt-limit impasse allows the government to meet its obligations, Fitch Ratings maintains a negative US rating as we assess the full implications of the recent escalation policy and the outlook for the medium-term fiscal and debt trajectory.” assessment was made.

In the statement, which stated that the US President Joe Biden is expected to sign the bill that foresees the suspension of the debt limit until January 1, 2025 in exchange for limiting non-military discretionary spending for 2 years, Fitch’s expectations and the US’s “AAA” It was noted that it was in line with the credit rating.

In the statement, it was stated that it is believed that the repeated political stalemates around the debt limit reduce the confidence in the administration in finance and debt issues.

Pointing out that there has been a continuous deterioration in the administration in the last 15 years with the increasing political polarization, it was stated that the repeated policy of escalating the tension on the debt limit and the failure to overcome the financial difficulties arising from the increased compulsory expenditures caused the fiscal deficits and debt burden to increase.

The statement noted that the US rating is supported by exceptional strengths, including the size of the economy, high GDP per capita and a dynamic business environment, although some of these strengths may suffer over time due to management shortcomings.

economics.haber7.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here