Fitch revises USA view to negative

Fitch Ratings said it revised the outlook for the United States to negative from stable and affirmed its AAA long-term foreign-currency and local-currency issuer default ratings.

The outlook revision reflects “the ongoing deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan, issues that were highlighted in the agency’s last rating review on March 26, 2020. High fiscal deficits and debt were already on a rising medium-term path even before the onset of the huge economic shock precipitated by the coronavirus,” Fitch said in a press release.

Fitch said it forecasts the general government calendar year deficit to widen to more than 20% of GDP in 2020. “The agency expects the deficit to narrow to 11% of GDP in 2021 as economic support measures are rolled back,” Fitch said.

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