In a recent interview with Reuters, Fitch's new head of sovereign ratings, James Longsdon, discussed the potential impact of 's second term as president on the U.S. credit rating. Fitch's upcoming rating review in the summer is expected to provide clarity on this matter.
Longsdon highlighted that issues related to 's credit rating and how the country handles its fiscal challenges will also be top priorities for Fitch. The U.S. was downgraded by Fitch in August 2023, following Standard & Poor's decision. Despite holding an AA+ rating with a "stable outlook," concerns persist about the country's economic trajectory under the Trump administration.
Regarding the looming rating review in August, Longsdon emphasized the importance of observing the legislative process and the approach to tariffs. Fitch currently anticipates possible tariff increases, particularly on China, Mexico, and Canada, which could impact global economic dynamics.
Aside from the U.S., Longsdon touched upon France and Britain's credit ratings. France's rating was downgraded to negative in October due to fiscal challenges, while Britain retains a stable outlook, albeit with growing doubts about fiscal target adherence.
Looking ahead, Fitch aims to maintain its reputation for timely and insightful evaluations. Longsdon stressed the significance of accurately predicting outcomes and being proactive in decision-making within the financial landscape.