ON TUESDAY, Fitch Ratings, one of the leading three US credit rating agencies, announced: The US’s long-term foreign-currency issuer defaulting rating would be downgraded. Among other factors pushing this downgrading, Fitch cited issues with governance, rising deficits and a looming recession.

Fitch, on an earlier occasion, put the US on watch for a potential downgrade. At that time, it warned: The US could soon lose its AAA score due to an inability to pay its bills, within a matter of days.

Reports by CNN and other leading parts of the US media said:

Fitch downgraded its US debt rating on Tuesday afternoon from the highest AAA rating to AA+, citing ‘a steady deterioration in standards of governance.’

The downgrade follows lawmakers negotiated up until the last minute on a debt ceiling deal earlier this year, risking the US’s first default.

The January 6 insurrection in the Capitol centring on presidential election result was also a major contributing factor in the downslide.