Washington, June 29 (ANI): Fitch Ratings on Friday confirmed the US top-level credit rating at AAA but said the outlook was negative and that high debt levels without more deficit reduction would leave the country exposed to future shocks.
The firm also announced that the affirmation reflected strong economic and credit fundamentals and cited the decrease in the federal budget deficit to levels, 'consistent with debt stabilization,' Fox news reports.
After the development, US Treasury yields fell down immediately but returned to their previous level of 2.48 percent, with most of the US market reaction muted by the late declaration.
Fitch also talked about plans to hold another review of the credit rating by the end of this year, although the guidelines prevent it to do so till June of next year.
It was announced that the outlook remained negative due to continuing uncertainty with the prospect for additional deficit-reduction measures necessary, over the medium to long term, adding that it reflects near-term risks associated with the expiration of federal appropriations authority.
Fitch also brought out the US economy's diversity and its 'extraordinary monetary and exchange rate flexibility'.
The firm also said that the current assessment is that of an economic recovery with a pick-up in the housing market and a gradual decline in unemployment.
Rival agency Standard and Poor had cut the US credit rating to AA-plus from AAA in August 2011, revising its outlook later after removing the near-term threat of a downgrade.
Moody's Investors Service too holds the US rating at AAA with a negative outlook, which is the position it has held since August 2011. (ANI)