Business and financeEconomyGovernment
August 02, 2023, 7:37 p.m. 2 minutes
Reuters was the first to interview the US analyst at Fitch who called for a downgrade of the US credit rating by one notch. The ratings call came as a shock and surprise to markets and investors, coming two months after a debt ceiling crisis was averted. The United States’ credit rating is arguably the largest in the world due to the widespread use of US Treasury bonds and the dollar’s status as the world’s reserve currency.
Fitch’s decision immediately sparked criticism from the White House and widespread perplexity. In the high-profile interview, Fitch analyst Richard Francis explained that political polarization in the United States contributed to the agency’s decision, including the Jan. 6 uprising — an episode Fitch highlighted during negotiations with the Treasury before the downgrade. He went through key moments before making this decision, including negotiations with the Treasury. Francis spoke about the disintegration of American politics and its ability to solve debt problems. He discussed future actions regarding the rating and the factors that would incline him to lower or raise it further.
Fitch’s decision was also predicted in a prescient analysis in June, in which Reuters reported that a sovereign downgrade was still on the cards, as last-minute debt ceiling negotiations have become an almost regular occurrence. in recent US history.
The ratings call came as a shock and surprise to markets and investors, coming two months after a debt ceiling crisis was averted. The credit rating of the United States is no doubt the most important globally due to the widespread use of US Treasury bonds and the status of the dollar as the world’s reserve currency.
Topics of interest: Business and financeEconomyGovernment
Type: Best of Reuters
Sectors: Business and financeFinancial services
Countries: UNITED STATES
Types of earnings: ExclusivitySpeed
Types of stories: Exclusive / Scoop
Media Types: Text
Customer impact: Important national history