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