Fitch Ratings has affirmed the US’ credit rating at AAA and given the country a stable outlook.
Earlier this month, Standard and Poor’s cut the US rating from AAA to AA+, citing concerns the nation’s new fiscal consolidation plan will fail to stabilise the government’s debt dynamics over the medium term.
In its latest review of US creditworthiness, Fitch has maintained the long-term foreign and local currency issuer default ratings, Treasury security ratings and country ceiling at AAA.
“The affirmation of the US AAA sovereign rating reflects the fact that the key pillars of US’s exceptional creditworthiness remains intact,” the agency says.
“Its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base. Monetary and exchange rate flexibility further enhances the capacity of the economy to absorb and adjust to ’shocks’.”
Fitch says the US remains one of the most productive economies in the world, despite its growing government debt, with the level of income per head standing “substantially higher” than the median for AAA countries.
In addition, the agency predicts the country’s economic recovery will soon resume in earnest and result in above trend growth for a period. Long-term economic growth is expected to be at least 2.25 per cent.