By Stephen Nakrosis

 

Fitch Ratings said on Friday it has placed certain categories of debt directly tied to the creditworthiness of the U.S. or its related entities on rating watch negative.

The debt affected includes prerefunded bonds with repayments that are wholly dependent on the AAA rating of the U.S. and agency obligations held in escrow. It also applies to, "municipal housing bonds that are primarily secured by mortgage-backed securities issued by Ginnie Mae, Fannie Mae and/or Freddie Mac."

The agency also said it placed the 301 Federal Family Education Loan Program student loan ABS on rating watch negative.

On May 24, Fitch said it was placing the AAA rating of the U.S. on rating watch negative as a result of increased political partisanship, which is hindering a resolution of the nation's debt ceiling issue.

 

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

May 26, 2023 17:46 ET (21:46 GMT)

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