Tax cuts may put pressure on the US credit rating - Fitch
Plans for US president-elect Donald Trump sharply cut taxes could jeopardize the credit rating of the highest of the country, according to the Fitch agency reported on Thursday.
"We are seeing an increase in the medium-term pressure on the rating of the US - said Ed Parker, Head of Fitch's sovereign ratings. - Even before the US elections had the highest level of public debt among the countries with AAA credit ratings. If we add here Trump plans to cut taxes by $ 6.2 trillion over the next 10 years, we get about 33% of the US public debt. "
Trump takes office on Jan. 20, but some of its promised policy changes have fueled the market and are of interest of investors. This, in addition to tax cuts, is, in particular, the abolition of health care reform, adopted under President Baraka Obamy.
In the short term, Trump policy does not pose a risk to US credit rating because the country continues to benefit from its strong points such as the role of the dollar as the dominant global reserve currency.
Fitch maintains a stable outlook on the US rating. Moody 's also has the highest rating for a first world economy, but the Standard and Poor's lowered the rating level by one notch lower - to AA +.
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