Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

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7eight9
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Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by 7eight9 » Fri Jul 31, 2020 6:43 pm

Fitch Ratings on Friday turned more negative on the outlook for the gold-plated U.S. credit rating. High fiscal deficits and debt were already on a rising medium-term path before the onset of the huge economic shock precipitated by the coronavirus, the ratings agency said in giving the U.S. a "negative" outlook, while maintaining a AAA rating. The U.S. had the highest government debt of any AAA-rated sovereign heading into the crisis, and Fitch expects general government debt to exceed 130% of GDP by 2021.
https://www.marketwatch.com/story/fitch ... 2020-07-31

Looks like Fitch is finally starting to get on board. S&P cut the AAA rating back in 2011.
I guess it all could be much worse. | They could be warming up my hearse.

000
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Re: Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by 000 » Fri Jul 31, 2020 6:48 pm

Thanks for the news. My prediction: this will have no effect on people eating up Treasury bonds.

Grt2bOutdoors
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Re: Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by Grt2bOutdoors » Fri Jul 31, 2020 6:49 pm

7eight9 wrote:
Fri Jul 31, 2020 6:43 pm
Fitch Ratings on Friday turned more negative on the outlook for the gold-plated U.S. credit rating. High fiscal deficits and debt were already on a rising medium-term path before the onset of the huge economic shock precipitated by the coronavirus, the ratings agency said in giving the U.S. a "negative" outlook, while maintaining a AAA rating. The U.S. had the highest government debt of any AAA-rated sovereign heading into the crisis, and Fitch expects general government debt to exceed 130% of GDP by 2021.
https://www.marketwatch.com/story/fitch ... 2020-07-31

Looks like Fitch is finally starting to get on board. S&P cut the AAA rating back in 2011.
So what? Did Fitch provide an analysis of other sovereign countries debt to GDP? You'll find the US isn't doing too badly compared to say Italy, Argentina and several other G-7 countries. Do you want to bet against the US, be my guest.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Ferdinand2014
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Re: Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by Ferdinand2014 » Fri Jul 31, 2020 7:47 pm

“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

anoop
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Re: Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by anoop » Sat Aug 01, 2020 2:39 am

000 wrote:
Fri Jul 31, 2020 6:48 pm
Thanks for the news. My prediction: this will have no effect on people eating up Treasury bonds.
If by "people" you mean "the fed" then I concur. People are just keeping rates artificially low and they are hinting they might do yield curve control.

000
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Re: Fitch cuts U.S. credit outlook to 'negative' on COVID-19, election uncertainty, but maintains AAA rating

Post by 000 » Sat Aug 01, 2020 4:16 pm

anoop wrote:
Sat Aug 01, 2020 2:39 am
000 wrote:
Fri Jul 31, 2020 6:48 pm
Thanks for the news. My prediction: this will have no effect on people eating up Treasury bonds.
If by "people" you mean "the fed" then I concur. People are just keeping rates artificially low and they are hinting they might do yield curve control.
No, I do not mean that.

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