Fitch cuts US credit rating to AA+; Treasury calls it 'arbitrary'

Record ID: 1736253

  • Title: Fitch cuts US credit rating to AA+; Treasury calls it 'arbitrary'
  • Date: 1st August 2023
  • Summary: WASHINGTON, D.C., UNITED STATES (FILE) (REUTERS) VARIOUS OF EXTERIOR OF THE U.S. DEPARTMENT OF THE TREASURY
  • Embargoed: 16th August 2023 00:58
  • Keywords: Biden Fitch Fitch Ratings White House Yellen credit rating debt ceiling downgrade
  • Location: VARIOUS LOCATIONS
  • City: VARIOUS LOCATIONS
  • Country: US
  • Topics: Budget/Taxation/Revenue,North America,Government/Politics
  • Reuters ID: LVA001159001082023RP1
  • Aspect Ratio: 16:9
  • Story Text:Rating agency Fitch on Tuesday (August 1) downgraded the U.S. government's top credit rating, a move that drew an angry response from the White House and surprised investors, coming despite the resolution two months ago of the debt ceiling crisis.
    Fitch downgraded the United States to AA+ from AAA, citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills.
    U.S. Treasury Secretary Janet Yellen said she disagreed with Fitch's downgrade, in a statement that called it "arbitrary and based on outdated data." The White House had a similar view, saying it "strongly disagrees with this decision."
    Investors use credit ratings to assess the risk profile of companies and governments when they raise financing in the debt capital markets. Generally, the lower a borrower's rating, the higher its financing costs.
    (Production: Andrea Rodriguez, Gerardo Gomez)
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2023. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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