Key facts
- Fitch Ratings affirmed the United States' sovereign credit rating at 'AA+'.
- Fitch assigned a stable outlook to the U.S. credit rating.
- Fitch cited the large economy as a strength.
- Fitch cited high per-capita income as a strength.
- Fitch cited the dollar's reserve currency status as a strength.
- Fitch projects U.S. debt-to-GDP to reach 127% by 2027.
Fitch Ratings has affirmed the United States' sovereign credit rating at 'AA+' with a stable outlook. The decision reflects a balance of strengths and weaknesses in the U.S. economic and fiscal landscape. Among the key strengths cited by Fitch are the nation's large and diversified economy, its high per-capita income, and the preeminent role of the U.S. dollar as the world's primary reserve currency. These factors provide significant resilience and flexibility.
Despite these strengths, Fitch projects that the U.S. debt-to-GDP ratio is on an upward trajectory. The agency forecasts this ratio to reach 127% by the year 2027. This projection, while indicating a substantial debt burden relative to economic output, is incorporated into the agency's assessment of a stable outlook. The stable outlook suggests that Fitch does not anticipate a significant deterioration or improvement in the U.S. creditworthiness in the near to medium term.
The affirmation of the 'AA+' rating places the United States among the highest-rated sovereign entities globally, reflecting a strong capacity to meet its financial commitments. The 'AA+' rating is just one notch below the highest possible rating of 'AAA'. The stable outlook indicates that Fitch expects the key factors influencing the rating to remain relatively unchanged over the outlook horizon.