US Credit Rating Would Hold Firm Even With Government Shutdown: Fitch
Portfolio Pulse from Piero Cingari
Fitch Ratings has stated that a potential U.S. government shutdown following the removal of U.S. Rep. Kevin McCarthy as House speaker will not impact the nation's credit rating. This comes after Fitch downgraded the U.S.'s credit rating from AAA to AA+ in August due to a steady deterioration in governance standards. Meanwhile, Goldman Sachs analysts have suggested that the political development may increase the chances of a shutdown. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen over 10% since early August in response to Fitch's rating action.
October 04, 2023 | 8:29 pm
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NEGATIVE IMPACT
Goldman Sachs analysts have suggested that the political development may increase the chances of a government shutdown.
The political development and potential government shutdown could lead to market instability, which may negatively impact Goldman Sachs in the short term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen over 10% since early August in response to Fitch's rating action.
The downgrade of the U.S.'s credit rating by Fitch has led to a significant drop in the price of the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT). This trend is likely to continue in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100