Home -
Brokers -
Main body -

WikiFX Express

Exness
EC Markets
TMGM
XM
FXTM
FOREX.com
AvaTrade
IC Markets Global
FXCM
ACCM

Fitch Downgrades the U.S. Credit Rating: Unpacking the Implications

DeltaStock | 2023-08-04 16:23

Abstract:Fitch Ratings, in a noteworthy action, has lowered the United States' Long-Term Foreign-Currency Issuer Default Rating (IDR) from 'AAA' to 'AA+'. This announcement, made on August 1, 2023, mirrors apprehensions concerning the nation's fiscal stability, governance norms, and debt handling, consequently indicating to investors and international markets about a heightened risk when lending to the United States. The immediate effect of this downgrade remains uncertain, especially as markets are presently performing poorly.

23rers (1).jpg

Fitch Ratings, in a noteworthy action, has lowered the United States' Long-Term Foreign-Currency Issuer Default Rating (IDR) from 'AAA' to 'AA+'. This announcement, made on August 1, 2023, mirrors apprehensions concerning the nation's fiscal stability, governance norms, and debt handling, consequently indicating to investors and international markets about a heightened risk when lending to the United States. The immediate effect of this downgrade remains uncertain, especially as markets are presently performing poorly.

Decoding the Downgrade

Credit ratings are an integral part of the financial system, acting as a barometer for assessing the creditworthiness of a nation. Essentially, they help investors worldwide to navigate the investment landscape by offering a risk-assessment tool. Therefore, a downgrade can significantly impact the inflow of investment, leading to fluctuations in market stability.

for public spending in areas like infrastructure, education, and healthcare.

Higher borrowing costs can also trickle down to businesses and consumers. If the government borrows at higher rates, banks and other lending institutions often raise their interest rates as well. Consequently, businesses might find it more expensive to finance their operations or expansion plans, and consumers may face higher rates on mortgages, credit cards, and loans. This can slow down domestic consumption and economic activity.

The U.S. plays a pivotal role in the global financial system. As the issuer of the worlds preeminent reserve currency, the U.S. dollar, its credit rating can have substantial implications for global financial stability.

A downgrade can lead to a decrease in the value of the U.S. dollar against other currencies. This shift could affect international trade, as many global transactions are conducted in U.S. dollars. Furthermore, many countries hold U.S. government bonds as part of their foreign exchange reserves. A downgrade, and the subsequent potential decrease in bond values, could impact the value of these reserves.

Furthermore, given the integrated nature of today's global financial system, a drop in trust from investors in the U.S. or a sudden change in U.S. asset values could induce substantial worldwide financial market instability.

Basically, the demotion of the U.S. credit rating is not merely a domestic issue. It bears extensive implications that could echo across the international financial ecosystem, affecting countries well beyond the confines of the U.S. borders.

img_v2_b16b2b19-0b04-4bd6-9ba8-fbf10f93dacg.jpg
Forex tradingForex Analysis

Related broker

Over-Operation
DeltaStock
Company name:Deltastock AD
Score
2.20
Website:http://www.deltastock.com/
5-10 years | Regulated in Bulgaria | Common Financial Service License | MT5 Full License
Score
2.20

Read more

10 Best MUST- READ Books on Forex Trading

Traders neglect the basic education about the forex market and end up losing money. It is one of the common mistakes they do. It is unsaid rule that If you're enter in the jungle of forex, you must read, learn, and understand before you start trading. In this article, you'll get to know about the books on forex trading that you must read.

Original 2025-07-30 19:52

Top 4 Forex Scam Tactics Fake Brokers Use to Trap Investors

Fake forex brokers always have multiple plans to dupe investors, including even the experienced ones. The constant complaints surrounding too-good-to-be-true schemes duping investors have made headlines in many forex journals. It’s time to stay vigilant against forex scam tactics that fraudulent brokers usually employ to defraud investors. In this article, we will talk about the top four forex scam tactics.

Original 2025-07-30 18:36

Which Currency Pairs are Most Commonly Traded in India?

Currency pairs play a crucial role in forex trading. To effectively participate in the forex market, it's important to understand which currency pairs are most relevant in your country. For traders in India, knowing the actively traded currency pairs is essential.

Original 2025-07-30 18:31

Inside the Fake ‘Datuk Seri’ RM400,000 Investment Scam

A man allegedly posing as a "Datuk Seri" is under scrutiny after several individuals reported being defrauded through an investment scheme believed to be linked to him.

Original 2025-07-30 17:55

WikiFX Express

Exness
EC Markets
TMGM
XM
FXTM
FOREX.com
AvaTrade
IC Markets Global
FXCM
ACCM

WikiFX Broker

FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
Blueberry Markets

Blueberry Markets

Regulated
TMGM

TMGM

Regulated
FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
Blueberry Markets

Blueberry Markets

Regulated
TMGM

TMGM

Regulated

WikiFX Broker

FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
Blueberry Markets

Blueberry Markets

Regulated
TMGM

TMGM

Regulated
FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
Blueberry Markets

Blueberry Markets

Regulated
TMGM

TMGM

Regulated

Latest News

Thailand-Cambodia War Pressures Thai Baht in Forex Market

WikiFX
2025-07-28 19:35

Treasury yields tick lower as investors look ahead to Fed's interest rate decision

WikiFX
2025-07-28 09:51

Does XS.com Hold Leading Forex Regulatory Licenses?

WikiFX
2025-07-28 10:14

Chile Bumps Up Copper Price Forecast and Flags Lagging Collahuasi Output

WikiFX
2025-07-28 14:32

A breakthrough and a burden? What the U.S.-EU trade deal means for the auto sector

WikiFX
2025-07-28 10:22

Investors Accuse Duttfx Markets of Scam: What You Should Know

WikiFX
2025-07-28 18:38

Treasury yields flat as investors look ahead to Fed's interest rate decision

WikiFX
2025-07-28 09:51

Bitget Lists Caldera for Spot Trading | What Should You Know?

WikiFX
2025-07-28 17:51

China's latest AI model claims to be even cheaper to use than DeepSeek

WikiFX
2025-07-28 13:00

European stocks head for higher open with earnings and U.S. trade deals in focus

WikiFX
2025-07-29 06:46

Rate Calc

USD
CNY
Current Rate: 0

Amount

USD

Available

CNY
Calculate

You may also like

East Asia Futures

East Asia Futures

SCSL

SCSL

DILLON W.SRL

DILLON W.SRL

Trans Scan

Trans Scan

BODAFX

BODAFX

Westpac

Westpac

BRD

BRD

Raffle Option

Raffle Option

FXPCM

FXPCM

Wizer

Wizer