Online reported that international rating agency Fitch said on the 21st that policy risks have cast a shadow on the U.S. credit prospects. In its mid-year update, Fitch downgraded its outlook for 25% of U.S. industries in 2025 to "worsening" due to increased uncertainty, slowing economic growth and expectations of long-term high interest rates. Fitch said the recently passed tax and spending bills highlight long-term challenges to the U.S. fiscal outlook and will put pressure on health-care-related industries. The combination of the tax bill and the extension of previous tax cuts is likely to keep the U.S. government's overall deficit above 7% of GDP and push the debt-to-GDP ratio to 135% in 2029. Fitch predicts that by 2025, default rates on 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 remain the main drivers of rating trends this year.