Fitch keeps the United States rating on watch negative

June 2 () –

The ‘AAA’ credit rating of the United States Government will remain in negative watch on Fitch Ratings despite the fact that the country has managed to avoid, for now, the risk of default with the approval in Congress of new legislation to suspend the limit legal debt.

The credit agency warned last week that the US’s top rating was under threat, upgrading it to “watch negative” amid political deadlock that could have triggered a possible nation’s debt default.

On Thursday, the Senate passed legislation to suspend the US debt limit until the 2024 election, and now it just has to make its way to President Joe Biden’s desk for his signature and into law.

“While the resolution of the US debt limit impasse allows the government to meet its obligations, Fitch maintains a negative watch as it assesses the full implications of the latest episode of policy risk and the outlook for fiscal trajectories and medium-term debt,” said Fitch’s senior director of sovereign ratings, Richard Francis.