Fitch revises US outlook to negative. Affirms AAA

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Fitch tilts outlook lower on the US debt

Fitch has revised its US outlook to negative. However it affirms its AAA rating.

They say:

  • US outlook has been revised to -2 reflect ongoing deterioration in US public finances and absence of a credible fiscal consolidation plan
  • says he revised down its macroeconomic projections on US since March and downside risks persist
  • expects US general government debt to exceed 130% of GDP by 2021
  • US long-term foreign-currency and local currency issuer default ratings at AAA and revise outlooks to negative from stable
  • sees US deficit to narrow to 11% of GDP in 2021
  • sees US economy to contract by 5.6% in 2020
  • sees GDP recover by 4% in 2021 with massive fiscal policy response averting a deeper downturn
  • future direction of fiscal policy depends partly on November’s presidential and congressional elections

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