So, after Fitch’s action, two of the three important rating agencies have downgraded US credit rating. A ‘AA+’ rating from Fitch means that US is no longer among the countries labelled as the safest borrowers, holding AAA ratings. But AA+ rating is not too bad and places the US far above most other countries. Why does the US enjoy a high credit rating despite its fiscal profligacy? The report points towards several factors which have led to a relatively high AA+ rating.

Source: The Hindu August 02, 2023 17:24 UTC