US credit gets a thumbs up from Fitch, but is the debt monster lurking? The 'AA+' rating comes with a big warning label.
- Aug 23, 2025
- 2 min read
The good news on debt comes with fine print.
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Hold onto your wallets because there's big news in the world of high finance. Fitch Ratings, one of the top credit rating agencies, just gave the United States a big thumbs-up, affirming its credit rating at 'AA+'. This might not sound super exciting, but itâs a huge vote of confidence. Theyâre basically saying the US economy is still a rock star, thanks to its massive size, high-income status, and the fact that the dollar is the worldâs go-to currency for just about everything. It's a pat on the back for a nation that's still seen as a financial powerhouse.
But wait, thereâs a catch. This shiny new 'AA+' rating comes with some serious fine print. While Fitch acknowledges Americaâs strengths, they also raised a red flag about the country's soaring debt levels and significant budget deficits. It's like being told you're great at your job, but you also need to stop spending money you donât have. Fitch sees a lack of "meaningful action" to fix these money problems, which is a major constraint on a better rating.
The numbers are a little jaw-dropping. Fitch projects that while the deficit will shrink a bit this year, the long-term outlook isn't so rosy. The debt-to-GDP ratio is expected to climb from 114.5% all the way up to a whopping 127%. That's a lot of IOUâs stacking up. This long-term debt trend is a big concern for the agency, which warns that it makes the US more vulnerable to future economic shocks. So while the immediate outlook is "stable," what does this mountain of debt mean for the future?
