The outlook on the U.S.’s AAA credit-ranking was raised to stable from negative by Fitch Ratings after Congress suspended the nation’s debt limit for more than a year, reducing the risk of a default, and as federal deficits decline.
The ratings company’s adjustment follows Moody’s Investors Service and Standard & Poor’s, which raised their outlooks last year on the U.S. to stable from negative. S&P stripped America of its top grade in August 2011, citing, in part, political wrangling about the debt limit. Moody’s gives the nation its top Aaa grade.
The issuer of the world’s reserve currency avoided a downgrade as stronger growth is forecast by a government agency to reduce the budget deficit to a seven-year low as a share of the economy.
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