Fitch Ratings recently downgraded the United States Long-Term Foreign-Currency Issuer Default Rating from ‘AAA’ to ‘AA+’. The global credit rating agency is simply saying that it is less confident in the ability of the World’s biggest economy to repay its debts.
However, Fitch removed the “Rating Watch Negative,” which means they no longer expect the rating to drop further. They also gave the U.S. a “Stable Outlook,” indicating that things might not get worse anytime soon. The “Country Ceiling” remains at ‘AAA,’ which means there’s still hope for improvement.
The credit rating agency said its decision to downgrade was because of some financial challenges the country is facing. It said that it is concerned about the expected deterioration of the U.S. government’s finances over the next three years, especially as the government continues to accumulate a lot of debt. A source of concern for investors.