The U.S. has received its highest credit rating by Fitch. Fitch Ratings said that the country deserves to hold onto its “AAA” rating on U.S. debt.
The outlook on the rating is stable, which means that it does not consider for there to be a downgrade in rating anytime soon.
The U.S. is able to absorb more debt than other countries because of the dollar acting as the the world’s pre-eminent reserve currency and fixed-income asset. It has the most liquid capital markets in the world.
Fitch said that the federal deficit will likely drop as a percent of GDP in the upcoming years, however, it will continue to grow in fiscal 2016.
The US has recovered quickly from the Great Recession compared to other economies, despite the recovery being fairly sluggish compared to past economic recessions.
Another main ratings agency, the Standard & Poor’s, downgraded the U.S. credit rating in 2011 because of talks about Congress raising the country’s borrowing limit. The S&P’s rating of “AA+” remains unchanged.