Fitch says Trump poses risks to global sovereigns

NEW DELHI: The Trump Administration represents a risk to international economic conditions and global sovereign credit fundamentals, Fitch Ratings has said in a statement.

"US policy predictability has diminished, with established international communication channels and relationship norms being set aside and raising the prospect of sudden, unanticipated changes in US policies with potential global implications," says the global ratings agency.

The primary risks to sovereign credits that Fitch has flagged unclude the possibility of disruptive changes to trade relations, diminished international capital flows, limits on migration and confrontational exchanges between policymakers that contribute to heightened or prolonged currency and other financial market volatility.

Fitch says US President Donald Trump's economic agenda would be positive for growth, including the long-overdue boost to US infrastructure investment, the focus on reducing the regulatory burden and the possibility of tax cuts and reforms, assuming cuts don't lead to proportionate increases in the government deficit and debt.