Fitch lowers long-term credit rating of U.S.

WASHINGTON – Fitch Ratings has downgraded the U.S.’ long-term foreign-currency credit rating to “AA+” from “AAA” with a stable outlook.

That change reflects expected fiscal deterioration over the next three years and a high and growing general government debt burden.

 It also reflects debt limit standoffs and last-minute resolutions.

“These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade,” Fitch said in a statement.

Fitch estimates U.S. annual real GDP growth slowing to over one percent this year, from a little over two percent in twenty twenty-two, and overall growth of point five percent next year.  

“Over the next decade, higher interest rates and the rising debt stock will increase the interest service burden, while an aging population and rising healthcare costs will raise spending on the elderly absent fiscal policy reforms,” said the statement.

In a statement, the rating agency says several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade.

The agency said it forecasts tighter credit conditions, weakening business investment, and a slowdown in consumption.

It predicts this will push the economy into a mild recession in the fourth quarter of this year and the first quarter of next year.