Fitch Downgrades Muni Ratings Tied To US Sovereign Ratings To 'AA+'; Outlook Stable; Downgrades To 'AA+' From 'AAA' Ratings Of Certain Categories Of Debt Directly Tied To Creditworthiness Of United States Or Related Entities
Portfolio Pulse from Benzinga Newsdesk
Fitch has downgraded muni ratings tied to US sovereign ratings to 'AA+' from 'AAA', with a stable outlook. The downgrade affects certain categories of debt directly tied to the creditworthiness of the United States or related entities.
August 04, 2023 | 2:42 pm
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NEGATIVE IMPACT
The downgrade of muni ratings tied to US sovereign ratings by Fitch may impact the SPY ETF, which tracks the S&P 500 and is influenced by the overall health of the US economy.
The SPY ETF tracks the S&P 500, which is a broad representation of the US stock market. A downgrade in the creditworthiness of the US, as indicated by the muni ratings tied to US sovereign ratings, could negatively impact investor sentiment towards US stocks, including those in the S&P 500. This could potentially lead to a decrease in the value of the SPY ETF in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75