Fitch Downgrades U.S. Credit Rating

Fitch Ratings, an international organization, has downgraded the credit rating of the U.S. government. This decision is based on concerns regarding the country’s financial situation and debt burden, as reported by the BBC.

Fitch, one of the three major independent agencies that evaluate creditworthiness, has lowered the U.S. credit rating from the highest level of 'AAA' to 'AA+', a one-notch decrease. According to the agency, there has been a 'steady deterioration' in governance over the past 20 years.

U.S. Treasury Secretary Janet Yellen called the downgrade 'arbitrary,' noting that it is based on 'outdated data' from 2018 to 2020.

Investors use credit ratings as a benchmark to determine how risky it is to lend to the government. In the case of the U.S., it is generally considered a low-risk investment due to the scale of the economy and relative stability.