Fitch affirms US AAA rating but outlook still negative

Fitch affirms US AAA rating but outlook still negative.

Global credit rating agency Fitch on June 28, 2013 affirmed the United States’ top level credit rating at AAA but held the outlook at negative, Fitch-Ratingsaying still-elevated debt levels leave the country vulnerable to shocks without more deficit reduction.

The affirmation reflects strong economic and credit fundamentals, the firm said in a statement. In addition, Fitch cited the decline in the federal budget deficit to levels “consistent with debt stabilization.”

US market reaction was muted by the late hour of the announcement. Benchmark 10-year US Treasury yields briefly dipped immediately after the news but quickly returned to their prior level of 2.48 per cent.

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