Fitch affirms US credit rating at AA+

In the statement addressing the factors influencing the rating, it was noted that the country's rating is supported by the US's large economy, high per capita income, dynamic business environment, and the financing flexibility it possesses due to the dollar being the leading global reserve currency.

However, the statement emphasized that high fiscal deficits, a significant interest burden, and high and rising levels of public debt limit the country's credit rating.

Pointing out that the US debt level is more than double the median value in the "AA" rating category, the statement conveyed that the government has not taken meaningful steps to address large general government fiscal deficits, and that spending pressures will increase over the next decade due to an aging population.

1.9 PERCENT GROWTH PROJECTED

The statement expressed that despite an increase in policy uncertainties such as higher tariffs, cuts in public spending, tightened border controls, and deportation practices, economic growth in the US is expected to remain relatively resilient at 1.9 percent in the 2026-2027 period.

Emphasizing that the US economy's resilience in the face of increasing uncertainties, such as tariff changes and sudden spikes in oil prices, reflects its capacity to absorb shocks, the statement noted that labor demand weakened in 2026 and the pace of job creation fell significantly.

The statement pointed out that annual inflation continues to follow a stubborn path above the US Federal Reserve's (Fed) 2 percent target, and it was estimated that inflation would average 3.4 percent this year.

Stating that inflation in the country is expected to approach the target towards the end of 2028, the statement underscored that although tariffs play a role in the rise of core goods inflation, the reflection of this effect on prices has remained more limited than expected.

The statement reported that the "debt limit," which refers to the government's legal borrowing limit of 41.1 trillion dollars, is projected to be reached by mid-2027.

Emphasizing that the country's debt-to-Gross Domestic Product (GDP) ratio continues to rise, the statement conveyed that the general government debt-to-GDP ratio is estimated to rise from its level of 117 percent as of the end of 2025 to 123 percent by the end of 2028.

News Source: 12punto