Fitch Ratings upheld its AAA rating on the United States on Tuesday after lawmakers approved spending cuts that will help avoid a U.S. default, but warned that the world’s largest economy must reduce its debt burden or face a downgrade.
The firm said while the agreement means default risk is extremely low, the United States “must also confront tough choices on tax and spending against a weak economic backdrop if the budget deficit and government debt is to be cut to safer levels over the medium term.”
Full story: Fitch keeps US AAA rating, review ongoing