Fitch keeps United States at ‘AA+’, cites economic resilience amid fiscal risks
It downgraded the US sovereign rating by one notch from the top-tier triple-A rating in 2023
Add BT as a preferred source
FITCH on Thursday (Aug 13) 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 per cent in 2026-2027, lower than the 2.8 per cent in 2025, and noted weakening labour demand and a significant slowdown in job creation this year.
Inflation remains a concern, with the agency expecting it to average 3.4 per cent in 2026, above the Federal Reserve’s 2 per cent 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 per cent 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
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
The S$1 million National Day paradox: ‘money dysmorphia’ amid a wealth surge
Singapore at 61: How we can ensure opportunity, security and ownership for the next generation
Why Asean matters more than ever to the UK and Singapore
When every phone becomes a satellite phone, what happens to Asia’s telcos?
