In a surprise move, global rating agency Fitch downgraded the US government’s credit rating from AAA to AA+ on Tuesday.
In a report released on its website, the ratings agency cited expected fiscal deterioration over the coming three years, a high and growing government debt burden and “erosion of governance… that has manifested in repeated debt limit standoffs and last-minute resolutions” as motivating the downgrade.
The downgrade comes two months after Congress reached a last-minute deal to lift the US debt ceiling after months of deadlock.
Credit ratings are used by investors to assess the riskiness of the debt issued by companies and government.
US Treasury Secretary Janet Yellen issued a response where she was critical of…
