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Bonds News

BRIEF-Fitch Affirms U.S. at 'AAA', Outlook Stable

April 5 (Reuters) - Fitch:

* FITCH AFFIRMS U.S. AT ‘AAA’; OUTLOOK STABLE

* FITCH SAYS U.S. SOVEREIGN RATING IS SUPPORTED BY STRUCTURAL STRENGTHS INCLUDING SIZE OF ECONOMY, HIGH PER CAPITA INCOME, DYNAMIC BUSINESS ENVIRONMENT

* FITCH ON U.S. SAYS TAX CUTS AND JOBS ACT PASSED IN DEC 2017 WILL LEAD TO HIGHER DEFICITS AND DEBT DESPITE SOME POSITIVE IMPACT ON NEAR-TERM GROWTH

* FITCH SAYS OUTLOOK FOR U.S. PUBLIC FINANCES HAS DETERIORATED SINCE THE LAST REVIEW

* FITCH SAYS FINANCING FLEXIBILITY IN THE U.S. REMAINS STRONG, BUT FISCAL FINANCING NEEDS WILL GROW SUBSTANTIALLY IN 2018 AND BEYOND

* FITCH SAYS FITCH EXPECTS U.S. GENERAL GOVERNMENT DEFICIT TO REACH 5 PCT OF GDP IN FY18 AND 6 PCT OF GDP IN 2019

* FITCH SAYS EXPECT THE U.S. FED TO RAISE ITS POLICY RATE BY A FURTHER 75BPS IN TOTAL IN 2018

* FITCH ON U.S. SAYS FED SET TO CONTINUE TO NORMALISE POLICY RATES, TO UNWIND EXTRAORDINARY STIMULUS, CUTTING BACK REINVESTMENT OF TREASURY PRINCIPAL REPAYMENTS

* FITCH SAYS THE SHORT-TERM ECONOMIC OUTLOOK FOR U.S. HAS IMPROVED, WITH FITCH FORECASTING GROWTH TO REACH 2.7% IN 2018 AND 2.5% IN 2019

* FITCH SAYS OVERALL FINANCIAL CONDITIONS IN THE U.S. REMAIN RELATIVELY LOOSE, AND WILL BE ASSISTED BY DEREGULATION, BUT CREDIT GROWTH IS UNDER CONTROL

* FITCH, ON U.S., SAYS SENSITIVITY ANALYSIS DOES NOT CURRENTLY ANTICIPATE DEVELOPMENTS WITH MATERIAL LIKELIHOOD OF LEADING TO A DOWNGRADE

* FITCH SAYS CURRENT ACCOUNT DEFICIT IN THE U.S. WILL LIKELY INCREASE ON THE STRENGTH OF DOMESTIC DEMAND Source text for Eikon:

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