Fitch Puts Securities Tied to Creditworthiness of U.S. on Rating Watch Negative
27 May 2023 - 08:01AM
Dow Jones News
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)
Copyright (c) 2023 Dow Jones & Company, Inc.