FITCH downgraded the U.S. government’s credit rating over concerns about the growing debt burden and a deterioration in standards of governance.
The agency stated that the rating downgrade reflects the expected fiscal deterioration of the United States over the next three years, a high and growing general government debt burden, and the erosion of governance relative to peers.
There has been a steady deterioration in standards of governance over the last 20 years, as said by Fitch, and fiscal and debt matters included, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.
The downgrade, the first by a major rating company in more than a decade, came after a debt ceiling bipartisan agreement was reached in June that followed months of political brinkmanship.
Meanwhile, the U.S. in response, treasury Secretary Janet Yellen said in a separate statement that she “strongly” disagreed with the downgrade, calling it “arbitrary and based on outdated data.”
“I strongly disagree with Fitch’s decision, and I believe it is entirely unwarranted,” Janet Yellen, U.S. Treasury Secretary said.
The U.S. Credit has been on the negative watch of Fitch since May, saying that it reflects increased political partisanship that is hindering resolving to raise or suspend the debt limit ahead of a looming deadline.
