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Fitch affirms U.S. AA+ rating with stable outlook but warns deficit ratio will rise this year

2026-08-14·newswire-us-stock-000001
Fitch affirms U.S. AA+ rating with stable outlook but warns deficit ratio will rise this year.

Fitch Ratings affirmed the United States’ AA+ credit rating and stable outlook, citing the country’s enormous economic scale and the dollar’s status as the world’s reserve currency. However, the fiscal deficit remains elevated, and Washington has so far taken no substantive measures to address it. The U.S. rating is one notch below the top AAA level.

Fitch said Thursday that the country’s dynamic business environment and high per capita income also support the rating, but that government debt is more than twice the median level for countries rated AA+. Fitch analysts said the U.S. government has yet to take meaningful action to address its large fiscal deficit.

High deficits, a heavy interest burden and steadily rising government debt are constraining the U.S. rating, they said. Fitch expects the U.S. fiscal deficit ratio to rise to 7.4% in 2026 from 6.8% a year earlier, influenced by tax cuts and tariff refunds.

It also expects the country’s debt-to-GDP ratio to climb further, with rising interest costs accelerating debt growth. The winning yield on the U.S. government’s 30-year Treasury bonds issued Thursday reached a 25-year high.

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Fitch affirms U.S. AA+ rating with stable outlook but warns deficit ratio will rise this year

Fitch Ratings affirmed the United States’ AA+ credit rating and stable outlook, citing the country’s enormous economic scale and the dollar’s status as the world’s reserve currency. However, the fiscal deficit remains elevated, and Washington has so far taken no substantive measures to address it. The U.S. rating is one notch below the top AAA level. Fitch said Thursday that the country’s dynamic business environment and high per capita income also support the rating, but that government debt is more than twice the median level for countries rated AA+. Fitch analysts said the U.S. government has yet to take meaningful action to address its large fiscal deficit. High deficits, a heavy interest burden and steadily rising government debt are constraining the U.S. rating, they said. Fitch expects the U.S. fiscal deficit ratio to rise to 7.4% in 2026 from 6.8% a year earlier, influenced by tax cuts and tariff refunds. It also expects the country’s debt-to-GDP ratio to climb further, with rising interest costs accelerating debt growth. The winning yield on the U.S. government’s 30-year Treasury bonds issued Thursday reached a 25-year high.

Fitch Ratings affirmed the United States’ AA+ credit rating and stable outlook, citing the country’s enormous economic scale and the dollar’s status as the world’s reserve currency. However, the fiscal deficit remains elevated, and Washington has so far taken no substantive measures to address it.

The U.S. rating is one notch below the top AAA level. Fitch said Thursday that the country’s dynamic business environment and high per capita income also support the rating, but that government debt is more than twice the median level for countries rated AA+.

Fitch analysts said the U.S. government has yet to take meaningful action to address its large fiscal deficit. High deficits, a heavy interest burden and steadily rising government debt are constraining the U.S. rating, they said.

Fitch expects the U.S. fiscal deficit ratio to rise to 7.4% in 2026 from 6.8% a year earlier, influenced by tax cuts and tariff refunds. It also expects the country’s debt-to-GDP ratio to climb further, with rising interest costs accelerating debt growth. The winning yield on the U.S. government’s 30-year Treasury bonds issued Thursday reached a 25-year high.

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