Fitch maintains US ‘AAA’ rating

WASHINGTON: Fitch Ratings on Thursday reaffirmed the United States’s ‘AAA’ credit rating, even with the country facing rising unemployment and a looming recession as the coronavirus pandemic exacts its toll.

“The US sovereign rating is supported by structural strengths that include the size of the economy, high per capita income and a dynamic business environment,” Fitch said.

The rating came as the Department of Labour reported unemployment claims surging to 3.3 million in the week ending March 21 after the pandemic caused many businesses to close.

Fitch predicts that US GDP will shrink by about 3% this year, worse than during the global financial crisis in 2009, but the economy could recover in 2021 if the virus is contained.