In a significant move, Fitch Ratings has downgraded the United States’ Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘AAA’ to ‘AA+’. This action, announced on August 1, 2023, is the reflection of concerns regarding the nation’s fiscal health, governance standards, and debt management, thereby signalling to investors and the global markets about the increased risk of lending to the United States. With markets currently in the red, the immediate impact of this downgrade is still unfolding.