Fitch Affirms U.S. Ratings at AA+

By Stephen Nakrosis

Fitch Ratings affirmed the United States' long-term foreign- and local currency issuer default ratings at AA+, with a stable outlook.

Factors constraining the U.S. rating include high fiscal deficits, a substantial interest burden, and high and rising government debt levels, according to Fitch.

In August of 2023, Fitch downgraded the U.S.'s long-term credit from AAA to AA+. At the time, the agency cited a growing U.S. debt burden and political dysfunction as lawmakers argued over the U.S. government's debt ceiling.

Fitch said the U.S. general government debt-to-GDP is expected to rise to 123% by the end of 2028, up from 117% at the end of 2025. The growing debt is being exacerbated by an increased interest burden, Fitch added. Fitch also said its current forecasts see the debt-to-GDP ratio hitting 128% by 2030 under current policy settings.

The general government deficit is forecast to widen to 7.4% of GDP this year, from 6.8% in 2025, Fitch added. "Efforts to reduce the deficit through expenditure adjustments will be limited since non-defense discretionary spending is less than 15% of total expenditures," Fitch said.

Fitch also said it expects $41.1 trillion debt ceiling will be reached in mid-2027.

Fitch said the U.S. rating is supported by its large economy, high per-capita income, and financing flexibility from the dollar's position as a global reserve currency. But, Fitch added, labor demand has weakened, and job creation has dropped significantly this year.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

August 13, 2026 17:40 ET (21:40 GMT)