Repeated government debt ceiling negotiations that threaten the administration’s ability to pay its obligations
New York – Reuters
Posted on: August 02, 2023: 06:29 PM GST Last updated: August 02, 2023: 07:05 PM GST
Richard Francis, senior director of sovereign ratings at Fitch Ratings, told Reuters today, Wednesday, that Fitch made its decision to downgrade the credit rating of the United States due to financial concerns, deteriorating governance and the polarization that was evident in the January 6 tensions.
In a move that surprised investors, Fitch downgraded the United States on Tuesday from AAA to AA+, attributing this to the expected financial deterioration over the next three years and repeated government debt ceiling negotiations that threaten the administration’s ability to pay its obligations.
The downgrade of the US sovereign credit rating by Fitch sent global stock markets lower, ending a steady rally and stirring up volatility for the first time in months.
After this downgrade, Fitch becomes the second agency after Standard & Poor’s to strip the United States of its excellent rating, noting that Standard & Poor’s did so in 2011.
#Americas #economy #Fitch #Downgrading #Americas #credit #rating #caused #polarization #deteriorating #governance
2023-08-02 14:29:00
