Fitch retains AAA rating for US; outlook negative | business | Hindustan Times
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Fitch retains AAA rating for US; outlook negative

business Updated: Jul 11, 2012 23:28 IST

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Fitch has maintained the top notch 'AAA' rating on the United States even as it maintained the credit outlook at negative citing risks associated with political disagreement over ways to reduce ballooning deficit.

AAA is the highest investment grade rating.

The global rating agency said affirmation of the coveted rating was on account of its highly productive, diversified and wealthy economy.

It is also due to exceptional financing flexibility afforded by the global reserve currency status of the dollar, among others.

"Fiscal and macroeconomic risks emanating from the financial sector are moderate and diminishing. The US sovereign credit profile also benefits from the respect for property rights, the rule of law and high degree of political and social stability," Fitch said in a statement.

Fitch has maintained the negative outlook mainly due to risks associated with the lack of broad public and political agreement on how to secure deficit reduction. The gross general government debt is equivalent to 103%of the American GDP, the agency said.