Fitch Ratings confirmed on August 22, 2025 that the United States will keep its Long-Term Foreign Currency Issuer Default Rating at AA+ with a Stable Outlook, signaling no immediate expectation of another downgrade even as the agency highlighted worsening fiscal metrics. Fitch said the US debt-to-GDP ratio is projected to climb from 114.5% at the end of 2024 to 127% by the close of 2027, while its real GDP forecast for 2026 was cut to about 1.9%, down 0.3 percentage points from its March 2025 estimate, with 2027 seen near 2%. The agency linked the softer growth path to elevated inflation, energy price volatility tied to geopolitical tensions, and tariff effects flowing through supply chains and import costs. Fitch said the rating remains supported by the size of the US economy, high per-capita income, a flexible business environment, and the dollar's role as the world's primary reserve currency (widely held for global trade and finance). The decision follows Fitch's August 2023 downgrade from AAA and Moody's May 2025 move, leaving all three major rating agencies with the US one notch below the top tier. For equity markets, the 1.9% growth outlook points to moderate expansion, while consumer discretionary sectors may face the heaviest pressure as inflation continues to erode household purchasing power.