US loses Fitch AAA rating following debt ceiling turmoil

‘Expected fiscal deterioration’

The US has seen its credit rating downgraded from AAA to AA+ by Fitch, citing "repeated debt limit standoffs" that threatened to result in the country defaulting on its debt.

In a statement yesterday (1 August), Fitch pointed to the "expected fiscal deterioration over the next three years" in the country, as well as the "steady deterioration in standards of governance" In May, Congress reached a conclusion to their debate over the debt ceiling, with a deal being reached after months of negotiations and threats that the US may default on its debt. US debt ceiling crisis shakes bond market Congress must vote to raise the amount it can borrow to pay for spending it has already committed to, also known as the debt ceiling, with the next deadline set for...