Fitch Ratings has downgraded the United States' longterm foreigncurrency issuer default rating from 'AAA' to 'AA+', citing expected fiscal deterioration, a high and growing debt burden, and declining governance standards. The forecasted rise in the general government deficit and debttoGDP ratio, along with the erosion of governance over the last 20 years, are primary factors for this downgrade. Fitch projects the U.S. economy to slip into a mild recession by the end of 2023, further straining fiscal conditions. Despite these challenges, the U.S. dollar's status as the world's preeminent reserve currency and the strength of the U.S. economy underpin the country's ratings. In terms of future ratings, a significant increase in government debt or a decline in policymaking coherence could potentially lead to a further downgrade, while a fiscal adjustment addressing rising mandatory spending could lead to an upgrade.

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