The revised rating still represents high creditworthiness, but it also reflects concerns over increasing Federal, State, and local debt, as well as a continuous decline in governance standards over the past twenty years.
This marks the second instance in the nation’s history when its credit rating has been downgraded. The downgrade comes considering repeated fiscal standoffs in Washington, ongoing political polarization, and delayed resolutions around debt limits. Fitch also factored in the alleged events of January 6th, 2021, viewing it as a sign of governmental instability.
