Fitch releases US credit rating and outlook

In a statement released by international credit rating agency Fitch, evaluations regarding the US economy were shared.

The statement reported that the US long-term foreign currency issuer default rating has been affirmed at "AA+," and the outlook remains "stable."

The statement noted that the US rating is supported by structural strengths such as the size of the economy, high per capita income, and a dynamic business environment, adding that the country benefits from the extraordinary financing flexibility associated with issuing the US dollar, the world's preeminent reserve currency.

The statement expressed that governance standards in the US have steadily declined over the last 20 years, political polarization has increased, and this situation has complicated the budget appropriation process, with periodic brinkmanship over the debt limit and government shutdowns.

The statement indicated that these governance issues have hindered the implementation of a credible medium-term consolidation plan for the country's public finances, emphasizing that the outcome of the presidential and congressional elections to be held in November will be significant in terms of the ability to formulate, pass, and implement legislation.

News Source: AA