Capitol Hill Insurrection And Fiscal Concerns Drove Down US Credit Rating, Fitch Director Says
Portfolio Pulse from Piero Cingari
Fitch Ratings has downgraded the U.S. credit rating from AAA to AA+ due to fiscal concerns, perceived governance decline, and increased political polarization. The decision was criticized by U.S. Treasury Secretary Janet Yellen and White House economic advisor Jared Bernstein as arbitrary and based on outdated data. To regain its previous rating, the U.S. would need to stabilize its debt-to-GDP ratio and possibly permanently suspend the debt ceiling, according to Fitch.
August 04, 2023 | 12:15 pm
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As Fitch Ratings is a subsidiary of S&P Global (SPGI), the downgrade of the U.S. credit rating could potentially impact SPGI's reputation and business.
While the downgrade of the U.S. credit rating by Fitch Ratings could potentially impact the reputation of its parent company, S&P Global (SPGI), it's unclear how this will directly affect SPGI's stock price in the short term. The reaction of investors to this news will be key to determining its impact.
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