Thursday, January 12, 2017

The tax cuts could threaten the rating of the USA-Fitch … – Investing

LONDON, January 12 (Reuters) – The projects of cuts and massive tax of the president-elect Donald Trump could threaten medium-term credit rating triple A of the United States, said Thursday the rating agency Fitch at an annual conference.

“We actually see a medium-term increase of pressure (on the note us),” said Ed Parker, head of Fitch for sovereign notes in Europe, the Near East and Africa (EMEA).

“Even before the elections, the United States was the country with the highest level of debt in government among those rated triple A,” he said. “If one adds to it the project of Trump 6,200 billion of tax cuts over 10 years, this could add about 33% to the debt of the american government.”

The United States note is protected in the short term by factors such as the role of the dollar as the main reserve currency in the world, he added.

Fitch noted the United States AAA with a stable outlook. Moody’s grants also the maximum rating but they are a notch below for Standard & Poor’s (AA+).

(John Geddie; Patrick Vignal for the French service)

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