Fitch downgrades US rating from AAA to AA+

Fitch downgraded the long-term foreign currency issuer default rating of the US from AAA to AA+. The outlook was changed from negative to stable, says in a Fitch post.

The agency explained that the downgrade is due to the expected worsening of the fiscal situation over the three years, the high debt burden that continues to grow, and the weakening of management over the past two years, which manifested itself in controversy over the public debt limit and decisions on this issue taken by “last minute”.

In addition, the reasons for downgrading the US rating Fitch includes the growth of the country’s budget deficit, the increase in public debt, the Fed’s rate hike and the threat of a recession.

The White House criticized the decision of the agency and expressed “categorical disagreement.” “It is contrary to reality to downgrade the United States at a time when the president [Джо] Biden has achieved the strongest recovery of any major economy in the world.” says in a statement by White House Press Secretary Karine Jean-Pierre.

Disagreement with Fitch’s decision also expressed US Treasury Secretary Janet Yellen. According to her, the downgrade is “unreasonable and based on outdated data.” The minister noted that the US unemployment rate is close to historic lows, inflation has “decreased significantly since last summer,” and last week’s GDP report shows the growth of the country’s economy. “The US economy remains the largest and most dynamic economy in the world, with the most developed and liquid financial markets in the world,” she stressed.

How notes Bloomberg, Fitch have not downgraded the US rating since at least 1994. Moody’s still rates the US at AAA. At the same time, S&P downgraded the country’s rating to AA+ in 2011.