The United States is becoming less reliable for investors. According to the credit rating agency Fitch, US government bonds are no longer among the safest investments imaginable. This is linked to the political battle over the debt ceiling.
This means that US government securities no longer have the desired AAA rating at Fitch, but are rated AA+. This is the first time in more than ten years that a leading rating agency has taken such a step.
The reduction is linked to the political battle over the debt ceiling in Washington. After weeks of negotiations, an agreement was reached about two months ago. But concerns at Fitch, where the US has had a AAA rating since 1994, have yet to dissipate.
The credit rating agency said in a statement, “The downgrade of the US rating reflects the expected financial deterioration over the next three years, high and growing government debt, and erosion of governance.”
Fitch had already warned last May that the country might lose its top rating. US Treasury Secretary Janet Yellen described the reduction as “arbitrary” and “outdated.”
The US credit rating was downgraded for the penultimate time in 2011. Credit agency S&P then lowered its rating to AA+. This also happened because of a disagreement between Democrats and Republicans over the debt ceiling.
