Fitch places US 'AAA' on rating watch negative

The US flag

Fitch Ratings placed on May 24 the US’ “AAA” long-term foreign-currency issuer default rating (IDR) on rating watch negative. 

The rating watch negative reflects increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit. 

Fitch’s decision is a warning that underscores the need for swift bipartisan action by Congress to raise or suspend the debt limit and avoid a manufactured crisis for the US economy. 

However, the rating agency expects US officials to reach an agreement before the June 1 deadline. 

Debt ceiling talks between President Joe Biden aides and House Republicans were at a stalemate. 

S&P Global downgraded the US after a similar standoff over the debt limit in August 2011.