The outcome of the United Kingdom's referendum on European Union membership will spill over to the U.S. economy but will not impact U.S. creditworthiness, says Fitch Ratings.
The main impact will likely be felt through a renewed strengthening in the dollar, which will have a dampening effect on growth and could delay the Fed's next rate hike.
A spike in market volatility and risk aversion could lead to a tightening of credit conditions. Credit spreads widened in reaction to the Brexit vote.
As a sovereign borrower, the U.S. benefits from global risk aversion. Falling yields on U.S. Treasuries underline the U.S. role as a safe haven, a key support to U.S. creditworthiness. Together with a historically low interest/revenue ratio of less than 8%, this allows the U.S. to sustain a general government debt burden higher than other AAA sovereigns, at over 100% of GDP.
