Fitch Ratings has affirmed the United States long-term foreign and local currency Issuer Default Ratings (IDRs) and U.S. Treasury security ratings at ‘AAA’, with a negative outlook on the long-term rating, the ratings agency reported on Tuesday.
Fitch also affirmed the U.S. Country Ceiling at ‘AAA’ and the short-term foreign currency rating at ‘F1+’.
“The affirmation of the U.S. ‘AAA’ rating is underpinned by its highly productive, diversified and wealthy economy; monetary and exchange rate flexibility; and the exceptional financing flexibility afforded by the global reserve currency status of the U.S. dollar,” the agency said on its website.
Fitch said the U.S. financial sector’s risks are moderate and diminishing, and added that the U.S. sovereign credit profile “benefits from the respect for property rights, the rule of law and high degree of political and social stability.”
The agency assessed that the United States would boost its economic recovery in the next two years.
The risks to the forecasts, it said, are “mostly to the downside in light of the uncertainty regarding U.S. fiscal policy and the European debt crisis and recession.”
Fitch revised its rating outlook for the United States to negative from stable in November 2011 following the failure of the Congressional Joint Select Committee on Deficit Reduction to reach agreement.