Fitch keeps United States at 'AA+', cites economic resilience amid fiscal risks

Fitch on Thursday affirmed the sovereign credit rating for the United States at "AA+" with a stable outlook, citing its large economy, high per-capita income and the US dollar's status as the world's leading reserve currency.

The US economy remained resilient despite higher tariffs, government spending cuts, tighter border controls and heightened policy uncertainty, reflecting its ability to absorb shocks and economic flexibility, the credit ratings agency said.

Fitch, however, estimated economic growth of 1.9 percent in 2026-2027, lower than the 2.8 percent in 2025, and noted weakening labor demand and a significant slowdown in job creation this year.

Inflation remains a concern, with the agency expecting it to average 3.4 percent in 2026, above the Federal Reserve's 2 percent target. Tariffs have added to core goods inflation, though their impact has been less severe than expected.

Fitch expects the general government deficit to widen to 7.4 percent of GDP in 2026 and remain at that level in 2027, the highest among "AA"-rated sovereigns. Higher military and interest costs, along with rising Medicare and Social Security spending, would limit efforts to reduce the deficit.

Peer S&P Global also maintained its "AA+" rating on the US in June, citing the economy's resilience and strong institutions.

Fitch had downgraded the US sovereign rating by one notch from the top-tier triple-A rating in 2023, pointing to expected fiscal deterioration and repeated down-to-the-wire debt ceiling negotiations.

Moody's downgraded the US by one notch last year, citing rising debt levels and stripping the country of its last remaining triple-A rating.

Reuters

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