Bonds & Rates
Home›Bonds & Rates›Government Bonds›Fitch affirms US sovereign rating at AA+ and keeps out…
Fitch affirms US sovereign rating at AA+ and keeps outlook stable
Fitch expects US growth to moderate to 1.9% in 2026 and 2027, citing a cooling labor market and rising fiscal strain.
Fitch affirmed the United States long-term sovereign credit rating at AA+ and maintained a stable outlook, citing a resilient but slowing economy, a weakening labor market, and rising fiscal pressure tied to entitlement spending and shutdown risk, according to Forexlive.
The rating decision removes near-term downgrade risk, but Fitch’s commentary remains cautious, with its growth outlook stepping down from 2.8% in 2025 to expectations of 1.9% in both 2026 and 2027.
Fitch pointed to a significant drop in job creation and labor demand this year as a key factor behind the slowdown, and it projected that inflation would not return to target until the end of 2028, suggesting patience on the near-term price path.
In addition, Fitch flagged the risk that gridlock and potential government shutdowns could keep the long end of the Treasury curve sensitive to political dysfunction, even as it said the AA+ rating is supported by the scale of the US economy, high per capita income, a dynamic business environment, and the US dollar’s financing flexibility through deep Treasury markets.