Fitch Ratings on further US "deterioration in governance" but shutdown won't impact rating

<p>Fitch Ratings <a href="https://www.forexlive.com/news/fitch-downgrades-usa-long-term-credit-rating-to-aa-from-aaa-20230801/" target="_blank" rel="follow">downgraded the US</a> back in August. A key determinant at the time was the "<a href="https://www.forexlive.com/news/fitch-says-final-decision-on-a-us-downgrade-was-taken-on-monday-20230802/" target="_blank" rel="follow">deterioration in governance</a>" cited by the agency. </p><p>Fitch has weighed in on the chaos in the US government that played out most recently just yesterday with the removal of the House Speaker. </p><ul><li>"Given the fact that the House speaker was ousted right after the continuing resolution was agreed, we expect political brinkmanship around government funding negotiations will remain tense and a shutdown later this year can't be ruled out," </li><li>added that a shutdown would not impact Fitch's US AA+ rating as the country's "deterioration in governance" was already a key factor behind Fitch's downgrade</li></ul><p>S&amp;P Global had already downgraded the US, analysts at the firm said that a government shutdown would affect economic activity but was not likely to have a further impact on their rating.</p><p>The reaction of many 'analysts', pundits, and politicians to Fitch's downgrade exposed a strong streak of hypocrisy.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.