Credit rating agency Fitch affirmed triple-A rating for the United States Monday, citing nation’s economic strength, liquid capital markets and flexibility in financing.
In comparison to most developed countries, the U.S. has a faster economic growth. Fitch described the nation as rich, diverse and technologically advanced as they have strong institutions and a promising business climate.
The federal government’s budget deficit is expected to narrow further in 2015 and 2016 in contrast to their 2.8 peak in 2014 due to economic strength and unpredicted low interest rates, said Fitch.
The rating agency also mentioned that without reforms to mandatory spending and taxation measures, the deficit is expected to increase in 2018.
Although the Congress and the White House have different budget proposals for the 2016 financial year, Fitch noted that improvements are expected despite cross-party consensuses such as the desirability of corporate tax reform.
For the first time since 2011, the U.S. rating was cut to double-A by Standard & Poor’s due to spending measures and debt limits.
Overall, a stable outlook on the U.S. is expected from the rating firm.