Fitch Ratings affirmed the United States' long-term foreign-currency issuer default rating at AA+ on Friday, maintaining a stable outlook.
The decision reflects the rating agency's assessment of the U.S. government's fiscal flexibility, despite persistent concerns over high debt levels and political polarization. Fitch noted that the country's reserve currency status and deep capital markets continue to support its creditworthiness.
The affirmation follows a similar move by Moody's Investors Service in late 2023, which also maintained the U.S. rating at Aaa with a stable outlook. Standard & Poor's has held the U.S. at AA+ since 2011, when it downgraded the rating from AAA amid a debt ceiling standoff.
U.S. Treasury yields edged higher following the announcement, with the 10-year note trading near 4.25%, up roughly 2 basis points on the day. The dollar index was little changed, reflecting limited market reaction to the rating affirmation.
Analysts said the stable outlook underscores confidence in the U.S.'s ability to manage its fiscal challenges, though long-term risks remain tied to rising entitlement spending and political gridlock over spending and tax policy.
The U.S. national debt surpassed $34 trillion in January, fueling debates over fiscal sustainability. However, Fitch emphasized that the country's economic resilience and institutional strengths mitigate near-term risks to its credit rating.
