In the statement made by Fitch, it was stated that despite the debt limit agreement, the US credit rating of “AAA” continues to be monitored for a possible downgrade.
“Although the analysis of the debt limit impasse in the US allows the government to fulfill its obligations, Fitch Ratings maintains the US’s rating monitoring as negative as we evaluate all the results of the recent policy of escalation and the outlook for the medium-term fiscal and debt trajectory,” the statement said. evaluation was made.
In the statement, which stated that the US Leader Joe Biden is expected to sign the bill that foresees the suspension of the debt limit until January 1, 2025 in exchange for limiting non-military discretionary spending for 2 years, Fitch’s expectations and the USA’s “AAA” It was noted that it was in line with the credit rating.
In the statement, it was stated that it is believed that the repeated political stalemates around the debt limit reduce the trust in the administration in terms of finance and debt.
Pointing out that there has always been a deterioration in the administration in the last 15 years with the increasing political polarization, it was stated that the policy of escalating the tension over the debt limit and the failure to overcome the financial difficulties arising from the increasing essential expenditures caused the fiscal deficits and the debt burden to increase.
In the statement, it was noted that the US rating is supported by exceptional strengths including the size of the economy, high GDP per capita and dynamic business environment, but some of these strengths may be damaged over time due to lack of administration.
Source: Bloomberg HT