The world’s largest economy loses triple A credit rating
The United States’ credit rating has been downgraded after a stand-off between the Biden administration and Congress undermined confidence that a ballooning national debt will be repaid.
Fitch, one of the three biggest ratings agencies in the world, on Tuesday lowered the United States’ long-term foreign currency rating to AA+ from AAA.
It said: “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to AA and AAA rated peers.”
The downgraded credit rating could make it more expensive for the US government to borrow in debt markets.