Fitch affirms US triple-A rating as it removes negative watch

Fitch Ratings has affirmed the United States' credit ratings at "AAA" with a stable outlook, removing the country from negative watch.

The action resolves the Rating Watch Negative on which the ratings were placed in October last year, the agency said.

Fitch noted the US had greater debt tolerance than other triple-A peers owing to the unparalleled financing flexibility provided by being the issuer of the world’s reserve currency and benchmark fixed income asset.

It also noted that the debt ceiling crises from last year had not negatively affected US bond yields or reduced foreign holdings of Treasury securities.

“Therefore Fitch does not believe the role of the U.S. dollar, sovereign financing flexibility or debt tolerance has been materially damaged,” Fitch said. “Strong fiscal consolidation has been achieved,” it added. (Reuters)