Fitch Ratings again, chipping away at the US sovereign
Fitch places Fannie Mae and Freddie Mac ratings on rating watch
negative
- Rating actions
follow Fitch’s placement of Unities States’ ‘AAA’ long-term
foreign and local currency IDRS on RWN on May 24, 2023 - Fannie Mae’s and
Freddie Mac’s long-term IDRS and GSRS are directly linked to US
sovereign’s long-term IDR - Also unclear at this
time what level of support housing GSES can expect if US rating were
to drop to ‘restricted default (rd)’ - If we were to
downgrade US sovereign to ‘RD’, it would not necessarily lead to an
immediate downgrade of housing gses’ ratings to ‘rd’ - Housing GSES
continue to benefit from meaningful financial support from US
government - –
–
This article was written by Eamonn Sheridan at www.forexlive.com.
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