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Fitch Ratings building in Canary Wharf, London, Britain, May 27, 2020.Dylan Martinez/Reuters

Ratings agency Fitch on Friday revised its outlook on the United States to “negative” from “stable,” citing deterioration in the country’s public finances and the absence of a credible fiscal consolidation plan.

High fiscal deficits and debt that were already rising before the coronavirus crisis have started to erode the traditional credit strengths of the United States, the agency said, while affirming its “AAA” rating.

“There is a growing risk that U.S. policymakers will not consolidate public finances sufficiently to stabilize public debt after the pandemic shock has passed,” Fitch said in a statement.

The United States had the highest government debt of any AAA-rated sovereign heading into the coronavirus crisis, the agency said, adding that it expects general government debt to exceed 130% of gross domestic product by 2021.

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