On Tuesday, Fitch Ratings said it was knocking down the country’s long-term foreign-currency issuer default rating (IDR) to ‘AA+’ from the highest score available of ‘AAA’.
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“In Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025,” the agency wrote in a commentary on the decision. “The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.”
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