Fitch affirms the U.S. credit rating at AA+ with a stable outlook, viewing the economy as still strong, even though it forecasts GDP growth of only 1.9% for 2569-2570, while monitoring fiscal risks.
On August 14, 2569 at 04.03:XNUMX a.m., Reuters reported that Fitch Ratings announced that it is maintaining the U.S. government's credit rating at "AA+" with a "Stable Outlook". The large size of its economy, high per capita income, and the status of the dollar as the world's primary reserve currency are seen as key factors supporting the country's credibility.
Fitch states that the U.S. economy remains resilient despite higher import tariffs, government spending cuts, stricter border controls, and increased policy uncertainty, reflecting the economy's ability to withstand shocks.
however Fitch continues to monitor fiscal and inflation risks. This poses a significant constraint on the U.S. credit rating in the coming period. Fitch forecasts the U.S. economy to grow by approximately 1.9% during 2569-2570, a sharp slowdown from the 2.8% growth in 2568.
The labor market is also starting to show signs of weakening. Demand for labor has decreased and new job creation has slowed significantly this year.
While the overall economy has been able to withstand pressure from various policies, slower growth reflects the impact of import tariffs, cuts in government spending, and policy uncertainty beginning to become apparent.
Inflation remains another risk. Fitch forecasts that the average inflation rate in the United States in 2569 will be around 3.4%, higher than the Federal Reserve's (Fed) inflation target of 2%.
Import tariffs have contributed to higher inflation in core commodity groups. However, the impact of the tax on overall price levels has not been as severe as previously anticipated.
Fitch places particular emphasis on the fiscal position, projecting that the overall government budget deficit will increase to 7.4% of GDP in 2569 and remain at that level in 2570. This level is the highest among all countries with an “AA” credit rating.
Budgetary pressures are likely to increase due to higher defense and interest spending, as well as the burden of growing Medicare and Social Security programs, which will limit the government's ability to reduce the budget deficit in the future.
Fitch previously downgraded the U.S. government's credit rating by one notch from the top-level "AAA" to "AA+" in 2566, citing weakening fiscal prospects and recurring, often protracted, debt ceiling negotiations nearing their deadlines.
S&P Global maintained the U.S. credit rating at AA+ in June, viewing the country's resilient economy and strong institutions as key supporting factors.
Moody's downgraded the U.S. credit rating by one notch last year, citing rising debt levels, resulting in the U.S. losing its AAA rating from all three major credit rating agencies.
Although Fitch maintains a stable outlook on the U.S. credit rating, the high budget deficit, rising interest rate burden, and inflation remaining above the Fed's target remain key risks to watch in the coming period.
refer : reuters.com
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