The credit rating agency Fitch has downgraded the sovereign's credit quality by one notch, transitioning from AAA to AA+. This decision was prompted by the anticipation of fiscal deterioration over the course of the next three years, coupled with a mounting and expanding burden of public debt, and a gradual erosion of governance. This downward trend in governance can be observed through the recurring conflicts surrounding debt limits and budget disagreements, which have consistently been resolved in the eleventh hour over the past two decades. The downgrade occurred on Tuesday, a mere day after the Treasury Department's announcement that it intends to secure a borrowing of approximately $1.85 billion during the latter half of the year, with $1 billion earmarked for the third quarter.
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