7/31, 11:12 PM (Source: TeleTrader)
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Fitch revises US outlook to 'negative' from 'stable'

Fitch Ratings Inc. announced on Friday that it downgraded the United States credit rating outlook to "negative" from "stable."

The revision has been done due to "the ongoing deterioration in the US public finances and the absence of a credible fiscal consolidation plan," the agency said, adding that the deficit and debt were expected to rise even before the pandemic-caused economic impact. "There is a growing risk that US policymakers will not consolidate public finances sufficiently to stabilize public debt," Fitch warned.

The credit rating agency also expects the general government deficit to expand to over 20% of GDP in 2020 and to reduce to 11% of GDP next year.

Breaking the News / MS