Fitch Downgrades United States Credit Rating below ‘AAA’: A Comprehensive Analysis by an Expert SEO Copywriter with Exceptional English Fluency

**The US Loses AAA Credit Rating from Fitch Ratings**
**Fiscal Deterioration and Growing Debt Burden**
Fitch Ratings has downgraded the United States from AAA, its top-tier sovereign credit rating, marking a significant shift in the nation’s financial standing. The US has held the AAA rating at Fitch since at least 1994, according to Bloomberg’s data. This downgrade follows a series of political battles over the country’s borrowing and repeated standoffs over the debt limit. Although the most recent legislative impasse was resolved, the potential for future concerns remains.

**Reasons for the Downgrade**
Fitch cited several reasons for downgrading the United States’ credit rating. Firstly, it highlighted the expected fiscal deterioration over the next three years. Additionally, Fitch expressed concern over the high and growing general government debt burden. Lastly, Fitch noted the erosion of governance relative to its ‘AA’ and ‘AAA’ rated peers over the past two decades. This erosion is evident in repeated debt limit standoffs and last-minute resolutions.

**Warning Signs of a Downgrade**
Fitch had previously warned on May 24 that there was a risk of a downgrade. The cautionary statement was an indication of the potential financial challenges the US faced. Now, with the downgrade to AA+, Fitch has one rating below AAA for the United States. However, Fitch maintains a stable outlook on the country.

**Other Credit Ratings**
Moody’s Investors Service, a separate credit rating agency, currently rates the US sovereign Aaa, its highest rating. Meanwhile, S&P Global Ratings has placed the US at a score of AA+, one notch below the top tier. S&P had previously removed the US’s top score in 2011 following an earlier debt-ceiling crisis.

**Response from Treasury Secretary Janet Yellen**
Treasury Secretary Janet Yellen responded to the downgrade, criticizing it as arbitrary and outdated. Yellen expressed her disagreement with the decision made by Fitch Ratings. However, Yellen’s statement does little to change the actual downgrade in the US credit rating.

**Implications of the Downgrade**
The downgrade by Fitch Ratings carries significant implications for the US economy and financial markets. A lower credit rating puts the US at a higher risk of increased borrowing costs in the future. It may also lead to a loss of investor confidence, potentially impacting the value of the US dollar and causing volatility in financial markets.

**Conclusion**
Overall, the downgrade of the US sovereign credit rating by Fitch Ratings represents a notable shift in the nation’s financial standing. The expected fiscal deterioration, growing debt burden, and erosion of governance relative to peers have all contributed to this downgrade. While Treasury Secretary Janet Yellen has criticized the decision, the implications of the downgrade remain, posing potential challenges for the US economy and financial markets.