Washington: International credit rating agency – Fitch Ratings has downgraded US government’s credit rating from AAA to AA+, voicing concerns about country’s standoffs over the debt ceiling.
Fitch, one of three major independent agencies that assess creditworthiness, observed that the decision was taken after a continuous deterioration in governance standards in the US.
The downgrade would impact the mortgage rates and contracts carried out across the world.
This could also force investors to sell US Treasuries which will lead to higher interest rates on different loans.
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Fitch said the decision is not related to the latest debt ceiling standoff but steady deterioration in governance standards over the last 20 years prompted such a move.
Treasury Secretary Janet Yellen in a statement disagreeing with Fitch Ratings said it is an arbitrary decision and based on outdated data.
White House press Secretary Karine Jean-Pierre also rejected the downgrading of US debt ratings.
In 2011 the US debt was downgraded by a major credit rating agency, S&P but the limit was raised after negotiations.
