Fitch: "No U.S. credit rating downgrade in the next 1–2 years"

International credit rating agency Fitch said it does not expect to cut the United States’ credit rating over the next 1–2 years.

According to Bloomberg on the 28th (local time), James Longsdon, Fitch’s global head of sovereign ratings, said of the U.S. credit rating, “Of course, pressure clearly exists.” Longsdon added that “the downside risk is greater than the likelihood of an upgrade,” but said he expects “no downgrade over the next 1–2 years.”

Earlier this month, Longsdon raised concerns about weakening independence at the U.S. Federal Reserve (Fed). At the time, he said, “A situation in which the central bank becomes fully politicized would be negative for creditworthiness,” adding that what matters for the U.S. credit rating is “strong confidence in the power of the dollar as the world’s reserve currency.”

Meanwhile, Fitch cut the U.S. credit rating in 2023 from the top rating (AAA) to AA+. Longsdon said, “We are monitoring the situation closely, but the current rating backdrop is almost identical to when it was downgraded.”