Fitch downgrades U.S. credit rating from AAA to AA+ – By Sheri Walsh (UPI) / Aug 1, 2023
Aug. 1 (UPI) — U.S. stock futures opened lower Tuesday evening on news that credit rating agency Fitch has downgraded the United States’ “Long-Term Foreign-Currency Issuer Default Rating” from its top-ranked AAA to AA+.
According to Fitch, the agency lowered the United States’ credit rating Tuesday after issuing a warning in May that the nation’s top-tier rating could be downgraded as the political battle over the debt ceiling waged on.
“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch said as the agency pointed to “expected fiscal deterioration over the next three years.”
In May, Fitch placed the United States’ AAA rating on a “negative watch” as lawmakers argued over how to keep the federal government from running out of money by June 5. President Joe Biden signed the debt ceiling bill on June 2.
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