According to a report from Coin World, international rating agency Fitch stated on the 21st that policy risks cast a shadow over the credit outlook for the United States. In its mid-year update, Fitch downgraded the outlook for the 25% sector in the U.S. for 2025 to 'deteriorating' due to increased uncertainty, slowing economic growth, and expectations that interest rates will remain high for an extended period. Fitch noted that the recently passed tax and spending legislation highlights the long-term challenges facing the U.S. fiscal outlook and will put pressure on healthcare-related industries. The combination of the tax legislation and the extension of previous tax cuts is likely to keep the U.S. government's total deficit above 7% of GDP and push the debt-to-GDP ratio to 135% by 2029. Fitch forecasts that by 2025, the default rates for U.S. high-yield bonds and leveraged loans will rise to 4.0% to 4.5% and 5.5% to 6.0%, respectively. Policy developments and industry-specific risks will continue to be the main drivers of rating trends throughout the year.