U.S. Gets a Debt Warning From Fitch as Stimulus Battle Rages

• One of the world’s major credit-rating companies fired a warning shot regarding the U.S.’s worsening public finances, just as lawmakers in Washington contemplate spending more to combat the economic fallout from the coronavirus pandemic.
• Fitch Ratings revised its outlook on the country’s credit score to negative from stable, citing a “deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan.” The country’s ranking remains AAA.
• “High fiscal deficits and debt were already on a rising medium-term path even before the onset of the huge economic shock precipitated by the coronavirus,” Fitch said. “They have started to erode the traditional credit strengths of the U.S.”

 (Source: Bloomberg)