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CNN —There may not be any lasting major negative ramifications from the surprise US credit rating downgrade by Fitch this week — not for the economy, not for consumers and not for the government’s ability to borrow. Normally, when your credit score as a consumer falls — or your credit rating as a country — there are negative consequences. Here’s why the United States is unlikely to see that kind of impact from the Fitch downgrade. The downgrade wasn’t a huge dropFitch cut its US credit rating to AA+ from what had been a sterling AAA rating. “Fitch’s credit rating is an expression of the probability of a default.

Persons: You’re, Fitch, “, brinkmanship, Marc Goldwein, you’re, ”, Mark Zandi, Yellen, Jamie Dutta, Dutta, ” George Mateyo, ” Mateyo, ” José Torres, Torres, it’s, ” Torres, Uncle Sam, CRFB, – CNN’s Krystal Hur, Allison Morrow Organizations: CNN, Fitch, AAA, Committee, U.S . Treasury, Moody’s, AA, “, Vantage, Key Private Bank, Federal Reserve, Interactive Brokers, Moody’s Investors Service, Treasury, Congressional, Social Security Locations: United States, States, corporates, United

That deterioration, as well as increased polarization in the country’s political climate, was visible in the Jan. 6 insurrection, which the agency highlighted in meetings with the Treasury ahead of the downgrade. "It was something that we highlighted because it just is a reflection of the deterioration in governance, it's one of many," he said. "You have the debt ceiling, you have Jan. 6. The latest debt ceiling suspension, agreed in June, will last until early 2025, when another political debate around the borrowing limit is likely, he added. "That would just highlight the real political polarization and the kind of deterioration in governance that we've already noted ... to have a two-notch downgrade would be pretty harsh."

Persons: Donald Trump, Leah Millis, Fitch, Richard Francis, Francis, Janet Yellen, Jared Bernstein, “, we've, Davide Barbuscia, Megan Davies, Ira Iosebashvili, Andrea Ricci Organizations: U.S, Capitol, REUTERS, Fitch, Reuters, AAA, Republicans, Hearst, Standard, Treasury, CNBC, Thomson Locations: Washington , U.S, States, United States

☆ Fitch's US debt-rating downgrade is bad news for stocks. Here's everything you need to know.
▼ + stars: | 2023-08-02 | by ( George Glover | ) www.businessinsider.com time to read: +4 min

The downgrade comes two months after Joe Biden and House Republicans reached an 11th-hour deal to stop a catastrophic default. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Here's everything you need to know about the ratings agency's shock move. Fitch said the last-minute debt-ceiling deal after months of shutdown had failed to convince it that Congress will be able to avert future calamities. As debt-ceiling negotiations dragged on earlier this year, the White House warned stocks could crash 45% if the government ever failed to repay its debts – so even a downgrade is bad news for the market.

Persons: Fitch, Joe Biden, Stocks, Joe Biden's, Biden, it's, AJ Bell's, Laith Khalaf, Fitch's, Janet Yellen, Larry Summers Organizations: House Republicans, Service, AAA, Social Security, House, Nasdaq, CME Group, Dow Jones, P Global, Biden Locations: Wall, Silicon, Europe, Asia

☆ CNBC Daily Open: Could the market bears be right?
▼ + stars: | 2023-08-02 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange during afternoon trading on July 18, 2023 in New York City. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Asian markets plungeU.S. stocks traded mixed Tuesday, with the Dow Jones Industrial Average, once again, outperforming other major indexes. Credit rating cutFitch Ratings downgraded the United States' long-term foreign currency issuer default rating from AAA to AA+.

Persons: Fitch, Donald Trump, Joe Biden, That's Organizations: New York Stock Exchange, CNBC, Dow Jones, Nikkei, United, AAA, AA, Stock, Trump Former U.S, Trump, Barclays Locations: New York City, Asia, Pacific, United States, U.S, East

☆ 'A short-term glitch:' Wall Street pros shrug off the effect of Fitch's downgrade on markets
▼ + stars: | 2023-08-02 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

The Dow Jones Industrial Average fell more than 200 points Wednesday after the downgrade as traders weighed the move. US10Y 1Y mountain 10-year yield 1-year However, Wall Street strategists mostly took the downgrade in stride. The S & P 500's 17% rally this year and the Nasdaq Composite's 33% advance had some traders worrying that equities have surged "too far, too fast." Stovall's S & P 500 year-end target is at 4,575 . Goldman Sachs' Jan Hatzius said Tuesday the downgrade will have "little direct impact" on financial markets.

Persons: Fitch, Janet Yellen, Sam Stovall, Stovall's, Wells Fargo's Christopher Harvey, Goldman Sachs, Jan Hatzius, Steven Zeng, Management's Yung, Yu Ma, Ma, CFRA's Stovall, Deutsche Bank's Zeng, Michael Bloom Organizations: U.S ., Fitch, AAA, Dow Jones, Treasury, Street, Nasdaq, Deutsche, BMO Locations: Washington, U.S, Tuesday's

☆ Fitch's downgrade of U.S. debt unlikely to have much economic impact — for now
▼ + stars: | 2023-08-02 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

While financial markets on Wednesday took a break from their monster rally of 2023, economists largely expect the impact on the economy to be minimal. Some even questioned the timing of Fitch's action, saying it seems to come after the biggest scare to whether the U.S. would meet its debt obligations has passed. Overall, this announcement is much more likely to be dismissed than have a lasting disruptive impact on the US #economy and #markets." It also cited the battles that warring congressional factions have had over the debt ceiling as well as budget standoffs. Goldman also said it does not see a meaningful impact on holders of Treasurys or other government-sponsored or municipal debt.

Persons: Mohamed El, Erian, Fitch, Veronique de Rugy, de Rugy, that's, Goldman Sachs, Goldman, There's Organizations: Poor's, Fitch, Allianz, Twitter, AAA, Mercatus, George Mason University, Treasury, Federal Reserve, Congressional, Moody's, Service Locations: U.S

☆ U.S. debt downgrade sinks global markets — but economists are not concerned
▼ + stars: | 2023-08-02 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Global stock markets tumbled on Wednesday after ratings agency Fitch downgraded the United States' long-term credit rating — but top economists say there is nothing to worry about. U.S. stock futures were sharply lower after the downgrade, pointing to a fall of almost 300 points for the Dow Jones Industrial Average at the Wednesday open on Wall Street. Current Treasury Secretary Janet Yellen described the downgrade as "outdated." Phillips said the downgrade "should have little direct impact on financial markets as it is unlikely there are major holders of Treasury securities who would be forced to sell based on the ratings change." Harvey noted that, ahead of the 2011 S&P downgrade, stocks were in correction territory, credit spreads were widening, rates were falling, and the global financial crisis "was still in the market's collective conscience" — whereas the conditions today are "almost the opposite."

Persons: Fitch, Larry Summers, Mohamed El, Erian, Summers, Janet Yellen, Goldman Sachs, Alec Phillips, Phillips, Wells, Chris Harvey, Harvey, Mark Mobius, they've, CNBC's Organizations: United, AAA, Dow Jones, U.S ., Allianz Chief, Treasury, Wells Fargo Securities Head, Equity, CNBC, ., Mobius Capital Partners Locations: United States, London, Asia, Pacific, Wells Fargo, U.S

☆ Here's why Fitch downgraded U.S. long-term rating to AA+ from AAA
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHere's why Fitch downgraded U.S. long-term rating to AA+ from AAARichard Francis, co-head of the Americas Sovereign Ratings at Fitch Ratings, joins 'Squawk on the Street' to discuss why his firm downgraded the United States' long-term foreign currency issuer default rating to AA+ from AAA, the possibility of mild recession in the near future, and more.

Persons: Fitch, AAA Richard Francis Organizations: AAA, Fitch, United Locations: Americas, United States

☆ Watch CNBC’s full interview with Jefferies’s David Zervos
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC’s full interview with Jefferies’s David ZervosDavid Zervos, chief market strategist at Jefferies, joins 'Squawk on the Street' to discuss Fitch downgrading U.S. long-term rating to AA+ from AAA and what this means for the market.

Persons: Jefferies’s David Zervos David Zervos, Fitch Organizations: Jefferies, AAA

☆ Mark Mobius says investors will diversify away from U.S. and into equities after Fitch downgrade
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMark Mobius says investors will diversify away from U.S. and into equities after Fitch downgradeMark Mobius, founding partner of Mobius Capital Partners, discusses Fitch Ratings downgrading the United States’ long-term foreign currency issuer default rating to AA+ from AAA.

Persons: Mobius, Mark Mobius Organizations: Fitch, Mobius Capital Partners, AAA Locations: U.S, States

☆ Here’s what the downgrade of U.S. credit rating by Fitch means for the market
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHere’s what the downgrade of U.S. credit rating by Fitch means for the marketDavid Zervos, chief market strategist at Jefferies, joins 'Squawk on the Street' to discuss Fitch downgrading U.S. long-term rating to AA+ from AAA and what this means for the market.

Persons: Fitch, David Zervos Organizations: Jefferies, AAA

The downgrade of the United States’ debt by a major ratings firm is a damning indictment of the country’s fractious politics and a blot on its financial record that is unlikely to be quickly erased. But many investors and analysts say it won’t affect the government’s ability to keep borrowing money. On Tuesday, Fitch Ratings lowered the credit rating of the United States one notch to AA+ from a pristine AAA. The firm, citing a “deterioration in governance” along with America’s mounting debt load, suggested that it could be a long time before that decision was reversed. The United States came within days of defaulting on its debt this spring as Republican lawmakers refused to lift the cap unless President Biden made concessions on spending.

Persons: ”, Richard Francis, “, Biden Organizations: United, Fitch, AAA, P, Treasury Department Locations: United States, Americas

☆ US Treasury yields edge lower after Fitch downgrade
▼ + stars: | 2023-08-02 | by ( Kevin Buckland | ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/IllustrationTOKYO, Aug 2 (Reuters) - U.S. Treasury yields edged down in Tokyo on Wednesday after ratings agency Fitch lowered the country's top credit rating. The 10-year Treasury note declined about 3.2 basis points (bps) to 4.015% as of 0017 GMT, retracing part of its 9 bps rise from Tuesday. Fitch overnight downgraded the U.S. government's rating to AA+ from AAA, citing an expected fiscal deterioration over the next three years as well as a high and growing general government debt burden. It had placed the rating on watch for a possible cut in May. "This will likely spark risk aversion flows as Asian markets re-open," Tony Sycamore, a markets analyst at IG, wrote in a note to clients.

Persons: Dado Ruvic, Fitch, Tony Sycamore, Joe Biden, Kevin Buckland, Jacqueline Wong Organizations: REUTERS, Treasury, AAA, IG, Swiss, Democratic, Republican, Standard, AA, Thomson Locations: Tokyo

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2023. Chart shows that the U.S.'s long-term foreign currency rating was downgraded by Fitch to AA+ in 2023, following a similar move from S&P in 2011. ET, Dow e-minis were down 104 points, or 0.29%, S&P 500 e-minis were down 24 points, or 0.52%, and Nasdaq 100 e-minis were down 132.25 points, or 0.84%. Among other early movers, Starbucks (SBUX.O) eased 1.9% after the world's largest coffeehouse chain missed market expectations for quarterly comparable sales. Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Fitch, Mark Haefele, Wells Fargo, Johann M Cherian, Saumyadeb Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Wall, AAA, Standard, UBS Global Wealth Management, Fitch, AA, Dow e, Nvidia, Microsoft, Devices, U.S, Caterpillar, CVS Health Corp, DuPont de Nemours, Investors, Thomson Locations: New York City, U.S, States, Wells, Bengaluru

☆ Fitch official confirms that January 6 Capitol riot was partially behind its controversial US downgrade
▼ + stars: | 2023-08-02 | by ( Brent D. Griffiths | ) www.businessinsider.com time to read: +3 min

A top official with Fitch Ratings said January 6 influenced its controversial downgrade of US credit. "I strongly disagree with Fitch Ratings' decision," Treasury Secretary Janet Yellen said in a statement. "The change by Fitch Ratings announced today is arbitrary and based on outdated data." The juxtaposition of Fitch's decision and January 6 became inadvertently apparent as soon as their decision was announced. News of former President Donald Trump's indictment related to his efforts to overturn the election broke just as Fitch's downgrade became public.

Persons: Fitch's, Richard Francis, Francis, Fitch, Janet Yellen, Larry Summers, Biden's, Donald Trump's Organizations: Fitch, Reuters, The Treasury Department, Service, Treasury Department, Biden, Congressional Republicans, White, Twitter Locations: Wall, Silicon, United States, States

☆ Watch CNBC's full interview with Fitch Ratings' Richard Francis
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Fitch Ratings' Richard FrancisRichard Francis, co-head of the Americas Sovereign Ratings at Fitch Ratings, joins ‘Squawk on the Street’ to discuss why his firm downgraded the United States’ long-term foreign currency issuer default rating to AA+ from AAA, the possibility of mild recession in the near future, and more.

Persons: Richard Francis Richard Francis, Squawk Organizations: Fitch, United, AAA Locations: Americas, United States

☆ Wall Street starts fretting about US debt again after months of easy stock-market gains
▼ + stars: | 2023-08-02 | by ( Joseph Wilkins | George Glover | ) www.businessinsider.com time to read: +3 min

Stocks have racked up easy gains over the past few months thanks to AI and cooling inflation. But investors are suddenly worried about debt again after Fitch slashed its credit rating for the US. The last time this happened was 2011 – and the S&P 500 took six months to recover its losses. Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. In response, the S&P 500 dropped 6.5% and took a further six months to recover its losses.

Persons: Fitch, –, It's, Stocks, AJ Bell's, Laith Khalaf, Fitch's, Ray Dalio Organizations: Service, Poor's, House Locations: Wall, Silicon, –, Washington –, Canada

☆ Factbox: Credit rating: The shrinking 'triple A' club
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: 1 min

Aug 2 (Reuters) - Ratings agency Fitch on Tuesday downgraded the U.S. government's top credit rating by a notch to 'AA+' sending jitters across global markets as investors assessed the impact from the move. Here is a list of countries whose sovereign debt is still rated 'AAA' by at least two of the top three ratings agencies:Compiled by Susan Mathew, Shubham Kalia, and Shubham Batra in Bengaluru;Our Standards: The Thomson Reuters Trust Principles.

Persons: Fitch, Susan Mathew, Shubham Kalia, Shubham Batra Organizations: AAA, Thomson Locations: Bengaluru

☆ 'Shark Tank' star Kevin O'Leary says US debt-rating downgrade means there's less faith in the dollar and Treasurys
▼ + stars: | 2023-08-02 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Fitch's US credit-rating downgrade means there's less faith in the dollar and Treasury bills, Kevin O'Leary said. This will push sovereign wealth funds to be weary of holding greenbacks, he told Fox News. Doesn't matter: the more the government goes into deficit spending, the more rating agencies scrutinize the quality of that debt," O'Leary said. This is the second downgrade the US has ever received, preceded by S&P Global's 2011 downgrade. Effectively, the lowered rating also means a higher cost of borrowing for the US, which deepens federal deficit spending.

Persons: Kevin O'Leary, Fitch, O'Leary, That's, Goldman Sachs, Jamie Dimon, Mohamed El, Erian Organizations: Treasury, Fox News, Service, US Treasury, AAA, AA, Wall, CNBC Locations: Wall, Silicon, America

☆ Dollar shaky after U.S. credit rating downgrade
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: +3 min

The dollar struggled to make headway on Wednesday after a cut on the U.S. government's top credit rating by Fitch raised questions about the country's fiscal outlook, though it drew some support from a relatively resilient run of economic data. "We don't think the Fitch decision is that material. Elsewhere, the Japanese yen was roughly 0.1% stronger at 143.21 per dollar, paring some of its gains from earlier in the morning. "I think the market is still trying to get their head around what this whole thing means," said NAB's Catril. The New Zealand dollar fell 0.23% to $0.6136, after data on Wednesday showed the country's jobless rate hit a two-year high in the second quarter.

Persons: Fitch, Sterling, we've, Rodrigo Catril, NAB's Catril, Matt Simpson Organizations: AAA, White, U.S, Fitch, National Australia Bank, NAB, Bank of Japan's, Reserve Bank of Australia, Index, New Zealand Locations: States

☆ Fitch 'vying for credibility' with U.S. rating downgrade, says Moneta CIO Aoifinn Devitt
▼ + stars: | 2023-08-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFitch 'vying for credibility' with U.S. rating downgrade, says Moneta CIO Aoifinn DevittAoifinn Devitt, Moneta CIO, joins 'Squawk Box' to discuss Fitch Ratings downgrading the U.S. government's credit carting to AA+ from AAA, citing what it sees as 'fiscal deterioration' over the next three years and continued 11th hour deals to raise the debt limit, the impact of the downgrade on markets, and more.

Persons: Fitch, Aoifinn Devitt Aoifinn Devitt, carting Organizations: U.S, Moneta, Fitch, AAA

☆ Jim Cramer praises Starbucks for an ‘exceptional quarter’ — here are the reasons
▼ + stars: | 2023-08-02 | by ( Morgan Chittum | ) www.cnbc.com time to read: +3 min

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. Equities tumble on Fitch downgrade Starbucks has 'exceptional quarter' Investors cheer Pioneer earnings 1. Starbucks has 'exceptional quarter' Starbucks (SBUX) was up 3% on Wednesday, one day after releasing fiscal third-quarter results after the bell. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .

Persons: Jim Cramer, Fitch, Jim, Jim Cramer's Organizations: CNBC, Fitch, Starbucks, AAA, Nasdaq, Palo Alto Networks, Tech Locations: China, U.S

☆ The last time US debt was downgraded markets plummeted. Will it happen again?
▼ + stars: | 2023-08-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Fitch Ratings downgraded US long-term debt late on Tuesday from AAA to AA+, citing this spring’s debt ceiling standoff as a major reason. In the midst of the very tense debt ceiling standoff of 2011, Standard and Poor’s downgraded US debt for the first time in history. “My sense is that the Fitch downgrade of the US credit rating is an insignificant development and will not move financial markets or the economy,” said Joseph Brusuelas, chief economist at RSM US. “The majority of our clients’ investments in China are through index funds, and we are one of 16 asset managers currently offering US index funds investing in Chinese companies,” BlackRock said in a statement to CNN. “With all investments in China and markets around the world, BlackRock complies with all applicable US government laws.

Persons: New York CNN — Fitch, Fitch, ”, Joseph Brusuelas, ” Fitch, Larry Summers, Janet Yellen, “, Dow, BlackRock, Larry Fink, Henry Fernandez, MSCI, Mike Gallagher of, Raja Krishnamoorthi, ” BlackRock, ” MSCI Organizations: CNN Business, Bell, New York CNN, AAA, AA, RSM, Federal Reserve, Fitch, Treasury, US, Twitter, Dow Jones, Nasdaq, Tech, Nvidia, Apple, Microsoft, Congressional, Chinese Communist Party of, BlackRock, CNN, People’s Liberation Army, PLA, Republican, “ Locations: New York, America, United States, States, Mike Gallagher of Wisconsin, Illinois, MSCI, China

☆ Fitch downgrades mortgage giants Fannie and Freddie from AAA to AA+
▼ + stars: | 2023-08-02 | by ( Anna Bahney | ) edition.cnn.com time to read: +2 min

CNN —The credit ratings of US mortgage giants Freddie Mac and Fannie Mae were downgraded by Fitch Ratings on Wednesday, the day after Fitch cut the US sovereign rating from the top-ranked AAA to AA+. The firm downgraded the mortgage giants’ Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings from AAA to AA+. The ratings agency said that as government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac benefit from implicit government support. But this flow of funds could be disrupted if the United States defaults on its debt, Fitch warned. It also said that should the US sovereign debt rating be raised, the GSEs’ rating would move in tandem.

Persons: Freddie Mac, Fannie Mae, Fitch, ’, Freddie, Fannie, Fannie Mae’s, Freddie Mac’s, ” Organizations: CNN, Fitch, AAA, AA, Congress, Federal Housing Finance Agency, U.S, Treasury’s Locations: United States

☆ Trump charged, Congo's gorilla hunters return and an intimate portrait of egg-freezing in Taiwan
▼ + stars: | 2023-08-02 | by ( ) www.reuters.com time to read: +1 min

Read the episode transcriptDonald Trump faces federal charges over his efforts to reverse the 2020 election. Rating agency Fitch downgrades the U.S. government's top credit rating. A potential visa waiver deal between Israel and the U.S. has officials inspecting some Palestinian border crossings. Plus an intimate portrait of what it's like to get your eggs frozen in Taiwan and the first Hollywood strike talks in three months. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices.

Persons: Donald Trump, Fitch Organizations: Apple, Google, Reuters, U.S, Hollywood, Thomson, Reading Trump, Treasury Locations: Israel, Taiwan

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