Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA.
The downgrade is attributed to the expected fiscal deterioration, erosion of governance, and growing debt burden. The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.
In May, the nation’s AAA rating was placed on negative watch due to the debt ceiling fight. President Joe Biden signed the debt ceiling bill just days before the “X-date” on June 5.