Fitch ratings place USA on rating watch negative

Fitch places United States' 'AAA' on rating watch negative

• United States' 'AAA' rating watch negative reflects increased political partisanship that is hindering resolution to raise or suspend debt limit
• Still expect resolution to US debt limit before x-date; however, believe risks have risen debt limit will not be raised/suspended before x-date
• Would expect US country ceiling to remain at 'AAA' even in scenario of a debt default
• We believe failing to make full & timely payments on debt securities by the US Is less likely than reaching x-date & is a very low probability event
• Believe risks have risen that US debt limit will not be raised or suspended; consequently gov could begin to miss payments on some obligations
• Believe risks have risen that US debt limit will not be raised or suspended; gov could begin to miss payments on some obligations
• Believe failing to make full & timely payments on debt securities by the US Is less likely than reaching x-date & is a very low probability event
• Fitch now forecasts a general government deficit at 6.5% of GDP GDP Gross Domestic Product (GDP) is the monetary value of all the goods and services produced within a country's borders in a specific period of time, typically a year. It is used to measure the economic activity and growth of a country. Periods shorter than a year are often presented in an annualized or year-over-year format.There are three ways to calculate GDP:The expenditure approach: GDP is calculated by adding up all the spending on goods and services within a country. This includes consumer s Gross Domestic Product (GDP) is the monetary value of all the goods and services produced within a country's borders in a specific period of time, typically a year. It is used to measure the economic activity and growth of a country. Periods shorter than a year are often presented in an annualized or year-over-year format.There are three ways to calculate GDP:The expenditure approach: GDP is calculated by adding up all the spending on goods and services within a country. This includes consumer s Read this Term in 2023 and 6.9% of GDP in 2024 for the US

The longer the stand off carries on the more we'll get like this from rating agencies. Such developments are not supportive of risk trades.