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Fitch Downgrades U.S. Credit Rating On Fiscal Deterioration, Government Debt Burden, and Debt Ceiling Standoffs

August 02, 2023

by Wolf Richter Wolf Street

Second major US ratings agency to downgrade the US to ‘AA+’. The first rating agency got whacked by the US government.

Following the shocker of an announcement by the Treasury Department yesterday that it would have to borrow $1 trillion in the quarter through September and another $852 billion in the quarter through December, on top of the $32.6 trillion the government already owes, Fitch Ratings threw in the towel today and became the second major US rating agency to downgrade the US of A.

Fitch cut the long-term credit rating of the US to ‘AA+’ from ‘AAA’. It already had the US on negative outlook, meaning a downgrade was possible. With the downgrade today, Fitch removed the negative outlook and assigned a stable outlook.