The credit rating agency downgraded the U.S. from AAA to AA+, a rating the country has held at Fitch since at least 1994, according to data compiled by Bloomberg.

The downgrade follows major political battles over the country's borrowing and repeated clashes over raising the debt limit. Although the most recent legislative impasse was resolved, it remains a potential cause for concern going forward.

The downgrade of the U.S. rating reflects the projected fiscal deterioration over the next three years, a high and growing public debt burden.

The news of the day is the erosion of governance relative to its "AA" and "AAA" rated peers over the past two decades, which has manifested itself in repeated debt limit standstills and last-minute resolutions", Fitch said in a statement.

Fitch had warned on may 24 that there was a risk of a downgrade. Fitch now rates the U.S. AA+, one notch below AAA, and the rating agency maintains a stable outlook on the country.

Translated by: A.M