(Reuters) – Fitch Ratings said on Tuesday the agreement to raise the borrowing capacity of the United States means the risk of a sovereign default is “extremely low” and commensurate with a AAA rating.
However, Fitch pointed out that without significant changes in fiscal policy the U.S. debt to gross-domestic product ratio “will reach 100 percent by the end of 2012, and will continue to rise over the medium term – a profile that is not consistent with the United States retaining its AAA sovereign rating.”
The firm said it expects to conclude its scheduled review of the U.S. sovereign rating by the end of August.
Even after a bruising battle in Congress to complete a $2.1 trillion deficit reduction deal, Fitch said the AAA status remains strong.
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