Fitch ratings place USA on rating watch negative | Forexlive

Fitch places United States’ ‘AAA’ on rating watch negative

United States’ ‘AAA’
rating watch negative reflects increased political partisanship that
is hindering resolution to raise or suspend debt limit
Still expect
resolution to US debt limit before x-date; however, believe risks
have risen debt limit will not be raised/suspended before x-date
Would expect US
country ceiling to remain at ‘AAA’ even in scenario of a debt default
We believe failing
to make full & timely payments on debt securities by the US Is less
likely than reaching x-date & is a very low probability event
Believe risks have
risen that US debt limit will not be raised or suspended;
consequently gov could begin to miss payments on some obligations
Believe risks have
risen that US debt limit will not be raised or suspended; gov could
begin to miss payments on some obligations
Believe failing to
make full & timely payments on debt securities by the US Is less
likely than reaching x-date & is a very low probability event
Fitch now forecasts
a general government deficit at 6.5% of GDP in 2023 and 6.9% of GDP
in 2024 for the US