Fitch Ratings downgraded U.S. government debt on Tuesday from its highest rating, AAA, to its second highest, AA+, citing an “erosion of governance” and booming federal budget deficit.
“The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to 'AA' and 'AAA' rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions,” the ratings agency wrote in a statement.
