Matt Levine’s Money Stuff: The US Is More AA+ Now

US AA+

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Fitch Ratings … cut the US’s sovereign credit grade one level from AAA to AA+. The move comes just two months after it warned the rating was under threat as lawmakers flirted with default by battling over raising the nation’s debt limit.

The credit grader justified the shift by arguing the country’s finances will likely deteriorate over the next three years given tax cuts, new spending initiatives, economic shocks and repeated political gridlock.

Pushing back hours before her department is set to ramp up its borrowing to plug a ballooning budget ...