For the first time in 12 years Fitch has pulled the scissors on America’s credit rating

Fitch has downgraded America from AAA to AA+. In other words, Fitch no longer gives America its highest rating. For the first time in 12 years, that is, in 2011, America’s rating agency has lowered its rating.
America’s economy whose glory is hoisted all over the world, seeing the movement of the stock market, the movement of the stock markets of all countries is decided, America’s strength is its powerful economy, now from that the giants of the world The confidence of the rating agency Fitch has been shaken. Fitch downgraded America from AAA to AA+. In other words, Fitch no longer gives America its highest rating. For the first time in 12 years, that is, in 2011, America’s rating agency has lowered its rating. Fitch took this step because of America’s weakening financial position and rising debt.
Why has America’s rating been downgraded?

Fitch, one of the world’s three largest independent rating agencies, says that over the past 20 years, America’s governance situation has deteriorated considerably. Fitch’s rating is recognized worldwide. In addition to the country, it also assesses the creditworthiness of various companies. But Fitch’s assessment has been described as arbitrary by US Treasury Secretary Janet Yellen. Ms. Yellen stated that the agency had assigned the rating on the basis of old data dating from 2018 to 2020, which did not describe the current situation.
Ratings are important for investors

First of all, the effect of lower ratings is felt in investors’ decisions. Investors regard credit ratings as a benchmark, since they enable them to estimate the degree of safety or risk of an investment in the instruments of a company or government. In such a situation, the ratings incident is bad news for America, as investments in US government instruments are considered the safest. This is because the American economy, by virtue of its size, is more stable than that of other countries.