The US had its credit rating cut one step to AA+ from the top ranking of AAA by Fitch Ratings, echoing a move made more than a decade ago by ratings agency – S&P in 2011.
The credit agency saying that it reflects “expected fiscal deterioration,” a “high and growing” government debt burden, and an “erosion of governance” in face of repeated debt-limit standoffs and other ills have cast doubt on the United States’ ability to meet all its payment obligations.
A lower credit rating could make borrowers less likely to lend money to the federal government on favorable terms, potentially raising costs for U.S. taxpayers.
In a strange move, #Fitch just downgraded the US sovereign #ratings from AAA to AA+, with a stable outlook.
The #rating agency's justification is set out in this statement (link below).
I am very puzzled by many aspects of this announcement, as well as by the timing.
I suspect I…— Mohamed A. El-Erian (@elerianm) August 1, 2023