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Fitch Ratings on Friday reaffirmed US’ long term foreign-currency and local-currency issuer default ratings at ‘AAA’ and revised the outlook to negative from stable. 

The outlook has been revised to negative due to the ongoing deterioration in the US public finances and the absence of a credible fiscal consolidation plan, Fitch’s report said.

Key quote

It is a truism that the U.S. government cannot run out of money to service its debts. However, there is a potential (albeit remote) risk of fiscal dominance if debt/GDP spirals, posing risks to U.S. economic dynamism and reserve currency status.