Site Error was encountered. Contact the Administator

Site Error was encountered

Severity: Notice

Message: Undefined index: HTTP_ACCEPT_LANGUAGE

Filename: models/mdl_lang.php

Line Number: 24

Site Error was encountered. Contact the Administator

Site Error was encountered

Severity: Notice

Message: Undefined index: HTTP_ACCEPT_LANGUAGE

Filename: views/header.php

Line Number: 2

«AgroInvest» — News — U.S. 'AAA' Rating Affirmed By Fitch Ratings

U.S. 'AAA' Rating Affirmed By Fitch Ratings

2014-03-21 10:41:45

Fitch Ratings on Friday maintained the 'AAA' ratings of the United States of America and the 'stable' outlook on the country's ratings, dismissing concerns over a possible downgrade in March.

This action resolved the Rating Watch Negative on which the ratings were placed last October, in line with Fitch's previous guidance that this would take place by end-March.

"Sensitivity analysis does not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating downgrade," Fitch said.

The coveted 'AAA' rating indicates that the economy is large, rich and diverse with GDP per capita and measures of human development above the median of the top rating.

Fitch affirmed the top notch rating after the federal debt limit was suspended in February in a timely manner and in a way that avoided casting uncertainty over the full faith and credit of the U.S.

The suspension is in place until March 15, 2015. Fitch assumes that the federal debt limit will be suspended again or raised in due course.

The rating agency forecasts gross general government debt, excluding trade payables comparable with EU countries, to peak at 100 percent of GDP in 2014, before declining slightly for four years. This is below the previous threshold of 110 percent that was incompatible with a 'AAA' rating for the U.S.

Moreover, Fitch does not believe the role of the U.S. dollar, sovereign financing flexibility or debt tolerance has been materially damaged after the debt ceiling crises in August 2011 and October 2013.

Further, the nation achieved strong fiscal consolidation, the agency noted. The federal budget deficit narrowed to 4 percent of GDP in fiscal year 2013 from 6.7 percent in fiscal 2012.

Other two major rating agencies, Standard & Poor's and Moody's Investors Service, gave 'stable' outlooks on the U.S. ratings. S&P surprisingly stripped U.S. of its triple A ratings in 2011, disturbing the financial markets.

 

 

RTTNews