-Alfonso Esparza, senior currency analyst at Oanda Corp.
The US top-notch credit rating was approved by Fitch Ratings Inc., which referred to the resilience of the world's number one economy, capital markets and status as the issuer of the world's reserve currency. Fitch said that the outlook for the AAA rating is stable, on the back of faster economic growth compared to most developed countries, while the US diversity, technological progress and favourable climate for business are the major advantages of the nation. The US budget deficit, which has shrank from the highest level on record of $1.4 trillion in 2009 to $483.3 billion in 2014, is estimated to continue contracting in 2015 and 2016, though reforms to compulsory spending and taxation measures will be required to prevent increases after 2018. The country has been operating under a debt limit imposed on March 16, which prohibits the government to add to its total borrowing. While Fitch predicts Congress to raise the level, that decision may come "close to" the period in October, when the Obama administration will deplete its disposable "extraordinary measures" to raise money to meet obligations without adding to the debt.
Moody's ranks the US at its highest credit rating, while S&P's rating is at AA+, its second-highest. S&P cut the US rating in 2011 for the first time amid fierce political disputes about spending measures and the debt ceiling.
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