Fitch Ratings affirmed the US credit rating at AAA with a stable outlook, but warned that even before the massive economic shocks caused by the spreading coronavirus, the nation's already high and rising debt and deficits were starting to erode its credit strengths. "The risk of a near-term negative rating action has risen given the magnitude of the shock to the economy and public finances from the coronavirus and the commensurate and necessary fiscal policy response, particularly in the absence of a credible consolidation plan for the country's pre-existing, longer-term public finance and government debt challenges." Under its "evolving baseline forecast" that is subject to revision, Fitch said US GDP would shrink by about 3% this year, calling that "an unprecedented occurrence in peacetime and a deeper contraction than in 2009." The prospect of permanently high budget deficits will weigh increasingly heavily on creditworthiness. $SPY $ES_F $VIX $TLT $UUP
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