Fitch Ratings Downgrades US Credit Rating: US Deep Investors and Former Officials: Fitch Decides Reasonably US | Rating | Investment
On August 1st, international rating agency Fitch downgraded the default rating of long-term foreign currency issuers in the United States from AAA to AA+, marking the second credit rating downgrade in US history. Regarding this, Su Shimin, CEO of Blackstone Group, one of the world's largest asset management companies, and former Director of the Congressional Budget Office in the United States, both stated that Fitch's decision to downgrade the US credit rating is reasonable and correct, both from the perspective of data and the long-term failure of the US government to effectively address debt issues.
Blackstone CEO Su Shimin: Data proves that Fitch's rating decision is reasonable. Since the international financial crisis, the debt of the United States has surged, and we seem to lack fiscal discipline, leading to a huge deficit now.
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Richard Francis, senior director of Fitch's sovereign rating, stressed that Fitch has sufficient reasons to downgrade the US rating. The US debt situation is deteriorating - the US government's debt accounts for 113% of GDP, and this proportion has been rising. In addition, the main reasons for Fitch's downgrade of its rating from AAA to AA+are political polarization in the United States, escalating party disputes, and repeated political deadlocks surrounding the debt ceiling. Douglas Holtz Ejin, former director of the Congressional Budget Office, agrees with this.
Douglas Holtz Ejin, Chairman of the United States Action Forum and former Director of the Congressional Budget Office: Importantly, the US government has no plans for the country's fiscal prospects. In fact, the United States has a very big problem, which is not a new thing. This situation has been going on for a long time, but we have been ignoring it. I think this is the key reason for Fitch's downgrade of the US credit rating. Nowadays, lawmakers are still arguing about the federal budget, but what they are arguing about is the most insignificant aspect.
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