Fitch Sees Threats to U.S. Rating

The Wall Street Journal reports:

Fitch Ratings affirmed its AAA rating on the U.S., saying a ratings change is unlikely soon due to the dollar's role as a global reserve currency and the demand for U.S. Treasurys by foreign investors.

Amid rising concerns among investors and criticism from the Republican party about a ballooning budget deficit, Fitch's big support to the U.S. comes with a caveat: the U.S. government faces medium-term fiscal challenges in the light of growing debt and falling revenues.

"The near-term risk to the...AAA status is minimal given its exceptional financing and economic flexibility and the U.S. dollar's role as the world's predominant reserve currency," said Brian Coulton, Fitch's primary analyst for the U.S.