US loses AAA credit rating over ‘erosion of governance’

by Renata

Fitch Ratings downgraded the U.S. credit rating from a triple-A to a double-A-plus Tuesday.

The international rating agency cited growing debt, deficits, and an “erosion of governance.” Specifically, they pointed to repeated political standoffs and last-minute resolutions over the debt ceiling. Meanwhile, the government is still borrowing more than $5 billion each day according to recent Treasury Department data.

There’s already been a $1.4 trillion deficit for this fiscal year, and the U.S. Congressional Budget Office projected last month that the national debt ratio will hit a historic high of 107% of its GDP in 2029.

Despite this, the White House strongly disagrees with the downgrade. In a written statement, Press Secretary Karinne Jean-Pierre blamed Republicans for the decision: “It’s clear that extremism by Republican officials … is a continued threat to our economy.”