Posted 1/10/2024, 6:08:00 PM
Fitch Downgrades US Credit Rating to AA+ on High Deficits and Debt Worries, 2024 Election Seen as Risk
- Fitch downgraded the US credit rating to AA+ from AAA in 2022 due to high deficits and debt ceiling debates
- Fitch expects deficits to remain high in 2023, with debt sustainability a concern
- The 2024 presidential election could impact US credit rating if it undermines policy coherence
- Fitch no longer expects a recession in 2023 due to improved economic outlook
- The Federal Reserve is expected to cut interest rates 3 times in 2023, which could support corporate debt issuers