Fitch has reduced two more debt rating from ‘AAA’ to ‘AA+’
Fitch reduced Fannie Mae and Freddie Mac’s Long-Term Issuer Default Ratings and senior unsecured debt ratings to ‘AA+’ from ‘AAA’ after a US rating drop. The downgrade was not due to fundamental credit, capital, or liquidity deterioration. The one-notch downgrade won’t materially impact investing decisions.
“Market are the decisions maker, not an agencies ratings” said JP Morgan CEO
Fitch Ratings downgraded the US government’s top credit rating from AAA to AA+ on Tuesday, citing budgetary and political instability. JPMorgan Chase CEO Jamie Dimon said the downgrade doesn’t matter much, as markets make big decisions, not ratings agencies. The Biden administration called the rating “arbitrary” after the White House and Congress escaped a debt…
The most anticipated recession of US economy
The Bank of America US Economist Michael Gapen has revised higher its outlook for economic activity this year and next, no longer expecting the economy to fall into a mild recession in 2024. The Bank of America expects the Fed’s rate hike to conclude in a soft landing, where growth falls below trend in 2024…
Biden has suggested invoking the 14th amendment
The debt ceiling debate in spring led to a downgrade, with the Committee for a Responsible Federal Budget praising the pact but recognizing signs of backsliding. The White House has announced a debt limit working group to study the issue. Biden has suggested invoking the 14th amendment as a risky option. Fiscal deadlock is more…
Analytics chief criticized Fitch’s move on lowering US credit rating
Fitch and S&P Global Ratings have lowered the US credit rating, two months after a debt-ceiling deal prevented government default. Moody’s Analytics chief economist Mark Zandi criticized Fitch’s move, calling it “off-base.” The White House and others reacted strongly, noting that Fitch’s quantitative ratings model for US budgetary health has improved since Biden took office.…
The Biden administration rejected Fitch rating
Fitch reduced the US government’s top credit rating from AAA to AA+, causing fury and a partisan blame game. The Biden administration rejected the proposal, calling it “arbitrary and based on outdated data.” The ratings agency emphasized long-term fiscal issues Washington needs to address. The American Enterprise Institute’s Michael Strain criticized Fitch’s timing, pointing to…
Fitch Rating the US country at AA+
Fitch Ratings downgraded the US economy to ‘AA+’ after S&P Global downgraded national debt in 2011. The downgrade was attributed to budgetary deterioration and frequent debt ceiling talks. Investors reacted by avoiding riskier assets, with Treasury rates declining 3 basis points and Nasdaq futures sank 0.7%. The dollar rose 0.2% after falling after the downgrade.…
Bankruptcy is haunting many Western Global airlines
Western Global, a Florida-based cargo airline, may declare bankruptcy this week after Moody’s and Fitch downgraded the company due to concerns it would fail on its large debt. The company has experienced revenue decline and lost Amazon in January, operating an aging fleet of Boeing 747-400 and MD-11 freighters. Western Global’s debtor-in-possession financing was provided…