Fitch downgrades the United States from AAA to AA+, citing fiscal deterioration and debt ceiling brinkmanship

Fitch Ratings cuts the U.S. sovereign credit rating by one notch from AAA to AA+, making it only the second major agency to strip the U.S. of its top rating. Fitch cites expected fiscal deterioration over the next three years, a high and growing government debt burden, and the erosion of governance reflected in repeated last-minute debt ceiling standoffs. The downgrade comes two months after Biden and House Republicans resolved the 2023 debt ceiling crisis. Fitch projects the U.S. debt-to-GDP ratio reaching 118.4% by 2025. At this point, Moody's remains the only major agency still holding the U.S. at AAA.