(MENAFN) The US kept its AAA credit rating at Fitch Ratings, but could not advance from its negative outlook, as the Congress and the Obama administration failed to reach an agreement on reducing the budget deficit, AP reported.
Fitch says that uncertainty over federal tax and spending policies related to the "fiscal cliff " weighs on the near-term economic outlook and raises the prospect of another recession.
Fitch also says huge debt on the US economy is poised to increase further and could hurt growth if an agreement isn't reached on the deficit.
Fitch explained that retaining the AAA rating for the US was based on "highly productive, diversified and wealthy economy", its flexibility in monetary and exchange rates, and the dollar's status as a global reserve currency.
The US Treasury securities lost its AAA rating last year to AA+ from Standard & Poor's, the first downgrade of US government debt in history.
S&P also said that the world's largest economy's negative outlook will not be revised until 2013, depending on the economic developments.
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