The United States’ credibility blow after 12 years. President Joe Biden is not going to like the rating agency’s report. But why not, in the last 12 years, the ratings of the superpower have once again come down from the floor. The US rating has dropped to AA+. Earlier, Standard & Poor’s rating agency had also given a report affecting the credibility of America. Even then America’s rating was downgraded from Triple A.
Fitch Ratings has downgraded the credit rating of the US government. This is the first time since 2011 that the US rating has been downgraded. The rating agency has taken this step citing increasing debt at the federal, state and local levels and a steady decline in business governance standards over the past two decades.
This is the second time in the history of America that its credibility has been reduced. Earlier in 2011, rating agency Standard & Poor’s had downgraded the government’s rating to AAA after a long impasse over the debt ceiling.
Fitch had expressed the possibility in May itself that America’s rating could go down this time. However, the rating was not touched in June after the correction at some levels. Then the agency said that it would prepare its final report only after seeing the report for the third quarter.