Fitch Ratings affirmed the US’ credit rating at ‘AAA’ with a negative outlook, according to a statement by the global rating agency.

The rating is supported by structural strengths, which include the size of the American economy, high per capita income and a dynamic business environment, it said on Tuesday.

“The US benefits from issuing the US dollar, the world’s preeminent reserve currency, and from the associated extraordinary financing flexibility, which has been highlighted once again by developments since March 2020,” it said.

The rating agency noted that the US economy has recovered from the coronavirus pandemic much more rapidly than expected, helped by policy stimulus and the rollout of the vaccination program that has allowed economic reopening.

Fitch, however, said the negative outlook reflects ongoing risks to the public finances and debt trajectory. It warned that “debt dynamics currently point to a broad stabilization in the debt ratio at a level where a further meaningful increase could lead to a downgrade.”

The agency expects the US economy to grow 6.8% in 2021 and 3.9% in 2022.

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