One of the top international credit rating agencies has downgraded the United States government’s credit rating from the highest level of AAA down one tier to AA+, a serious economic signpost as U.S. debt continues to soar and deficits remain elevated.
Fitch Ratings made the decision, pointing to the U.S. government’s high national debt and deficits as well as an “erosion of governance.”
“The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘A.A.’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,” Fitch said in its announcement.
Fitch is considered one of the top three rating agencies in the world, along with Moody’s and Standard & Poor’s, the latter of which sparked economic concerns when it downgraded the U.S. government in the same fashion in 2011.
