While the United States' fiscal deficit will increase this year, Fitch Ratings believes it's not a current threat to Uncle Sam's credit worthiness. Fitch has affirmed the United States' top-notch triple A rating, and issued a stable outlook on the debt, thanks in part to investor appetite for government bonds. 'The U.S. government debt is everyone else's preferred reserve asset,' explained Charles Seville, Senior Director at Fitch Ratings and head of North American Sovereign Ratings. Fitch expects a gradual rise in general government debt over the next decade, and notes the deficit will widen this fiscal year for the first time since 2009.
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Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
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