The budget deal struck by President Obama and congressional leaders is enough to merit a triple-A credit rating from Fitch Ratings, one of the three big ratings agencies.
“Agreement was reached on an increase in the United States’ debt ceiling and, commensurate with its ‘AAA’ rating, the risk of sovereign default remains extremely low,” the agency said.
“While the agreement is clearly a step in the right direction, the United States, as in much of Europe, must also confront tough choices on tax and spending against a weak economic back drop if the budget deficit and government debt is to be cut to safer levels over the medium term.”
Forbes reports that Fitch will finish a review of the U.S. credit rating prompted by the debt ceiling crisis at the end of the month.
“Given the agreement to raise that borrowing agreement,” Forbes writes. “and the fact that ‘the fundamental economic and financial underpinning of the United States’ “AAA” status remains strong,’ a downgrade in the near term from Fitch does not seem likely.”