MNI BRIEF: China’s Top Ratings Agency Downgrades U.S.

China’s Chengxin Credit Rating Group has downgraded the U.S. Government's credit rating to AA+ from AAA, noting rapidly rising interest rates, persistent inflation and difficulties raising the debt ceiling could lead to further economic volatility, according to a statement on the CCXI website Friday.

The ratings agency highlighted a further downgrade would occur if the U.S. Government failed to raise the debt ceiling, adding debt sustainability was at risk due to higher refinancing costs brought on by an economic slowdown.

The move comes after MNI gained insight into Fitch’s recent decision to place the US government on a downgrade watch list. (See: MNI: U.S. Fiscal Trajectory Deviating From AAA peers-Fitch - Bonds & Currency News | Market News)

CCXI noted the U.S. Federal Reserve faced multiple challenges exacerbated by the ongoing banking crisis, which may deepen economic volatility.