Toronto, Oct. 29 -- The US credit outlook is expected to remain broadly benign despite tighter funding conditions. However, higher interest rates and increased borrowing to finance artificial intelligence investments could put pressure on lower-rated borrowers and sectors sensitive to interest rate changes, Fitch Ratings said.

"Higher-for-longer interest rates and rising AI-related funding needs will test interest-sensitive and lower-rated U.S. borrowers, but Fitch Ratings expects the overall credit outlook to remain broadly benign," the ratings agency said.

Fitch raised its US economic growth forecasts for 2026 and 2027 by 0.2 percentage point each to 2.1 per cent, supported by resilient consumer spending and AI-driven private investme...