FITCH lowers its outlook on US credit rating to 'negative'...
One of the world’s major credit-rating companies fired a warning shot regarding the U.S.’s worsening public finances on Friday ... Fitch Ratings revised its outlook on the country’s credit score to negative from stable, citing a “deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan.” The country’s ranking remains AAA.
“High fiscal deficits and debt were already on a rising medium-term path even before the onset of the huge economic shock precipitated by the coronavirus,” Fitch said. “They have started to erode the traditional credit strengths of the U.S.”
Unemployment has skyrocketed and the U.S. economy just notched up its worst quarter on record, with pandemic-related shutdowns helping drive an annualized gross domestic product contraction of 32.9% in the three-month period through June. And with infections still spreading rapidly in many states, the virus’s damaging impact on output looks set to continue.
General government debt is expected to exceed 130% of GDP by 2021, Fitch said, noting that the U.S. had the highest government debt of any AAA rated sovereign heading into the current crisis.
https://www.msn.com/en-us/money/markets/united-states-outlook-revised-to-negative-from-stable-by-fitch/ar-BB17qy05
= new reply since forum marked as read
