FITCH US DOWNGRADE
Debt ceiling standoff could trigger US rating downgrade, TD's Goldberg says
Gennadiy Goldberg, head of U.S. rates strategy at TD Securities, warns of a potential severe debt ceiling standoff in the U.S. in 2025, similar to the 2011 crisis, which could lead to another sovereign credit rating downgrade. Despite Congress suspending the debt ceiling until 2025, concerns over rising U.S. debt persist following forecasts by the Congressional Budget Office of significant deficits for fiscal years 2024 and 2025.
S&P downgrades French credit rating in blow to Macron
Ratings agency Standard & Poor's downgraded France's credit score on Friday citing a deterioration in the country's budgetary position, a blow to Emmanuel Macron's government days before EU parliamentary elections. France's general government debt will increase to about 112 percent of GDP by 2027, up from around 109 percent in 2023, "contrary to our previous expectations", the agency added.
NYCB gets third credit downgrade as CRE exposure worries spill to Europe
New York Community Bancorp faced its third credit-rating cut on Thursday as defaults worries from exposure to the beleaguered U.S. commercial real estate (CRE) took its toll on lenders in Europe and Asia.
US government shutdown later this year would not hurt rating: Fitch
the latest factor to prompt worry on Wall Street about U.S. political governance after a near-miss with a partial federal government shutdown this weekend and a debt ceiling crisis earlier this year.
S&P downgrades multiple US banks on growing liquidity worries
A sharp rise in interest rates by the U.S. Federal Reserve is fueling liquidity concerns as costs tied to funding deposits surge, the S&P said in a summarized note. The agency cut its ratings on Associated Banc-Corp and Valley National Bancorp on funding risks and higher reliance on brokered deposits, while UMB Financial Corp , Comerica Bank and KeyCorp were downgraded on large deposit outflows and prevailing higher interest rates.
Fitch warns it may downgrade many US banks, including JPMorgan
Fitch Ratings has warned that US banks, including JPMorgan Chase, could be downgraded if the agency further cuts its assessment of the operating environment for the industry. If Fitch were to lower its score to A+ from AA-, it would be forced to re-evaluate ratings on more than 70 US banks. This news follows Moody's downgrading 10 mid-sized US banks earlier this month and warning that it may cut ratings of several others.
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RBI MPC, FII action, Q1 earnings among top 10 factors to drive Dalal Street mood this week
Plenty of data to be announced by the US this week including those on trade balance, CPI, initial jobless claims, wholesale inventories and consumer sentiments. The UK will declare industrial production, manufacturing production and GDP data. China will announce its FDI, CPI, producer price index (PPI) and trade balance data
Fitch Ratings downgrade: Is panic warranted in the markets?
As an investor in Indian equity markets, you must not fret over the US downgrade by Fitch and focus on stocks that you own in your portfolio over anything else. Make sure that they are fundamentally sound and hold them with patience.
Rating agencies, don’t be such a Fitch
Naturally, questions will arise over the timing of the rating action. Expectations of monetary tightening bringing the US economy to a standstill are receding. Doomsayers are in retreat, and Fitch finds itself under attack — from the administration and from independent observers. Standard & Poor’s, Moody’s and Fitch had warned the US its AAA credit rating was at risk. But only one has acted on it.
I would not sell US equities because of Fitch downgrade: Steve Englander, Standard Chartered Bank
Steve Englander of Standard Chartered Bank believes that the panic caused by the Fitch downgrade of the US rating is a pure risk premium, with US CDS barely impacted. Englander also thinks that the US market will soon move past the downgrade as everything Fitch said was already true and that equity markets had been overenthusiastic over the last couple of months. Furthermore, there may be a sharp correction in equity markets but he would not sell US equities due to the Fitch downgrade.
What will be the ratings cut impact on US markets? Arnab Das explains
It is really countries that are facing a refinancing problem or a default problem where there really is a sovereign creditworthiness issue at stake. When they get downgraded, and particularly when they go from investment grade to high yield or junk bond status, that is when it becomes a very serious problem. So I think this will pass.
Fitch’s US downgrade is stoking the very fight it warned against
Fitch Ratings' decision to downgrade US government debt has been seized upon by rival political factions as a new weapon of combat in their never-ending war, and finger pointing has already commenced. Although President Biden has yet to publicly comment on the ratings cut, aides claim he was initially irritated about the news. The House Freedom Caucus, a group of Republican lawmakers, is demanding lower spending levels during the looming shutdown fight, while Biden’s team has blamed Donald Trump for the reduction.
Fitch move spotlights US debt risk as recession fear fades
Fitch Ratings has downgraded US government credit from AAA to AA+ based on the medium-term fiscal outlook characterised by rising deficits and government debt. The downgrade is a signal that the US needs to get its budgetary process in order ahead of what looks like another political fight this fall, and although the Federal Reserve no longer expects a US downturn, Fitch expects a mild recession in the US in the fourth quarter this year and first quarter of 2024. US debt is predicted to reach 118% of gross domestic product by 2025, three times higher than the median of 39%.
US stock market: Wall Street ends down, investors step back after Fitch US rating cut
Fitch downgraded the United States to AA+ from AAA late on Tuesday, citing expected fiscal deterioration over the next three years as well as growing government debt. Fitch was the second major agency to cut the country's rating. In 2011 Standard & Poor's stripped the country of its triple-A grade.
Yellen says Fitch downgrade 'entirely unwarranted' amid US economic strength
U.S. Treasury Secretary Janet Yellen on Wednesday voiced more objections to Fitch Ratings' downgrade of the main U.S. credit rating, calling it "entirely unwarranted" because it ignored improvements in governance metrics during the Biden administration and the country's economic strength.
US markets may not see lasting impact from Fitch downgrade
Early moves in U.S. financial markets on Wednesday indicated some aversion to riskier assets as investors assessed the impact of the surprise downgrade.
Dollar shrugs off Fitch's US downgrade, advances on strong jobs data
Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed, more than an increase of 189,000 that economists polled by Reuters had forecast.
Fitch cites need for 'long-term' fix after US downgrade
The comments by Richard Francis on CNBC came a day after Fitch took the United States' top-tier AAA rating down a notch to AA+, drawing fiery pushback from the White House and Treasury Department.
Wall St falls after Fitch downgrades top-tier US rating
Several major brokerages said Fitch's downgrade was unlikely to result in a sustained drag on U.S. financial markets, noting that the economy was stronger than in 2011.
US debt: What does the loss of a triple A rating mean?
The top three global ratings agencies: S&P Global, Fitch and Moody's, use the same system of letters, ranging from a top AAA rating through B, C and D for payment defaults.
Fitch cuts US credit rating to AA+; Treasury calls it 'arbitrary'
With the downgrade, it becomes the second major rating agency after Standard & Poor's to strip the United States of its triple-A rating. The dollar fell across a range of currencies, stock futures ticked down and Treasury futures rose after the announcement. But several investors and analysts said they expected the impact of the downgrade to be limited.
European stocks slide at open after US downgrade
Ratings agency Fitch downgraded the United States' top-notch credit rating by a step on Tuesday, citing a growing federal debt burden and an "erosion of governance" that has manifested in debt limit standoffs.
Will Fitch cut in the US ratings impact Indian market? Hemang Jani answers
The Indian earnings season is going well with about 33 Nifty companies delivering decent numbers. Despite the downgrade of the US rating by Fitch Ratings from AAA to AA+, there is no need to be too concerned as the broader trend for the Indian market is positive. The hospitality industry is looking particularly good with strong traction in occupancy and pricing.
Asian Stocks fall, Treasuries gain after Fitch downgrades US rating
Asian stocks were also weighed by declines on Wall Street overnight. U.S. stock futures, the S&P 500 e-minis, pointed 0.2% lower on Wednesday. Fitch cut the United States by one notch to AA+ from AAA, citing fiscal deterioration, a decision announced after the Wall Street close on Tuesday.
Dollar shaky after US credit rating downgrade
Rating agency Fitch on Tuesday downgraded the United States to AA+ from AAA in a move that drew an angry response from the White House and surprised investors, coming despite the resolution two months ago of the debt ceiling crisis.
Gold gains as US dollar, yields stumble on Fitch downgrade
The U.S. dollar index and benchmark 10-year Treasury yields dropped after rating agency Fitch downgraded the U.S. government's top credit rating, citing fiscal deterioration over the next three years and growing general government debt burden.
US Treasury yields edge lower after Fitch downgrade
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.
Fitch downgrades cash-strapped Pakistan's Issuer Default Rating to CCC-
Fitch typically does not assign outlooks to sovereigns with a rating of CCC+ and below. Its downgrade comes after S&P Global in December cut its long-term sovereign credit rating for Pakistan by one notch to "CCC+" from "B", citing a continued weakening of its external, fiscal and economic metrics.
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