U.S. debt gets AAA Fitch rating

Fitch Ratings Inc., one of the three statistical rating organizations nationally recognized by the U.S. Securities and Exchange Commission, has affirmed that it has awarded a AAA score to the U.S. debt. Fitch attributed the US’s good rating to an improving outlook for the US debts and debits, at least in the near-term. Fitch also highlighted the United States’ “unparalleled financing flexibility as the issue of the world’s pre-eminent reserve currency…and as home to the world’s deepest and most liquid capital markets.”

The Bradenton Herald reports that while upholding the AAA rating was never in question, the Fitch Corporation did spell out a few instances that would lower the United States’ credibility. “A significant increase in government deficits and debt/GDP ratio, for example if the U.S. authorities do not take measures in the medium to long term to offset rising expenditure pressures from aging and higher interest rates, could lead to a downgrade,” Fitch said in a statement.

Aside from Fitch, Standard & Poor’s and Moody’s are the other two credit rating companies that the U.S. hopes to get good ratings from. Ratings reflect the predicted ability to pay back investors, and when the US hit trouble in the financial waters a few years ago, Standard & Poor’s downgraded its rating for the US to AA + in 2011, the same rating given to smaller economies like Abu Dhabi or Finland. Standard & Poor’s justified the low rating by citing partisan battles over raising the debt ceiling and an inability to forge a plan to deal with long-term debts.

Since then, Standard & Poor’s has upgraded the U.S. rating to stable in 2013, but still has not raised the rating to a AAA.

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