29 Jun 2013
Fitch leaves the US' outlook as negative but affirms its AAA
FXstreet.com (San Francisco) - Fitch Ratings has decided to leaves unchanged its perspective about the United States as the agency has affirmed its AAA sovereign rating.
In a press release, Fitch informed the firm has affirmed "the United States (U.S.) Long-term foreign and local currency Issuer Default Ratings (IDRs) and Fitch-rated Treasury security ratings at 'AAA'. Fitch has also affirmed the U.S. Country Ceiling at 'AAA' and Short-term foreign currency rating at 'F1+'."
According to Fitch, the AAA reflects the "U.S.'s strong economic and credit fundamentals, including the global reserve currency status of the U.S. dollar, and progress on reducing government budget deficits." However, the agency will conduct a further review of the U.S. sovereign ratings by the end of 2013.
On the other side, Fitch also leaves the perspective in the country as negative. The Outlook remains negative "due to continuing uncertainty over the prospect for additional deficit-reduction measures necessary to reduce government indebtedness over the medium to long term, and near-term risks associated with the expiration of federal appropriations authority at the end of the current fiscal year (30 September 2013) and in particular a timely increase in the debt limit."
Fitch considers that "the U.S. economy (and hence tax base) remains more dynamic and resilient to shocks than its high-grade rating peers." The Agency expects the "economic growth to accelerate from 1.9% this year to 2.8% in 2014 and to average 3% over 2015-17 before reverting to its assumed long-run trend rate of growth 2.25%."
In a press release, Fitch informed the firm has affirmed "the United States (U.S.) Long-term foreign and local currency Issuer Default Ratings (IDRs) and Fitch-rated Treasury security ratings at 'AAA'. Fitch has also affirmed the U.S. Country Ceiling at 'AAA' and Short-term foreign currency rating at 'F1+'."
According to Fitch, the AAA reflects the "U.S.'s strong economic and credit fundamentals, including the global reserve currency status of the U.S. dollar, and progress on reducing government budget deficits." However, the agency will conduct a further review of the U.S. sovereign ratings by the end of 2013.
On the other side, Fitch also leaves the perspective in the country as negative. The Outlook remains negative "due to continuing uncertainty over the prospect for additional deficit-reduction measures necessary to reduce government indebtedness over the medium to long term, and near-term risks associated with the expiration of federal appropriations authority at the end of the current fiscal year (30 September 2013) and in particular a timely increase in the debt limit."
Fitch considers that "the U.S. economy (and hence tax base) remains more dynamic and resilient to shocks than its high-grade rating peers." The Agency expects the "economic growth to accelerate from 1.9% this year to 2.8% in 2014 and to average 3% over 2015-17 before reverting to its assumed long-run trend rate of growth 2.25%."