US Creditworthiness in Question as China’s CCXI Lowers Rating Amid Fiscal Uncertainties

China Chengxin International Credit Rating Co. (CCXI), a joint venture with Moody’s Investors Service, has lowered the US credit rating from AAA to AA+ with the potential for further future downgrades.

In a recent statement, CCXI warned that the political brinkmanship over the US debt ceiling could lead to policy uncertainty and weaken economic confidence, igniting further volatility in US politics and the economy. While the agency anticipates a debt-ceiling deal to be reached, it foresees potential risks leading to deterioration of the US’s creditworthiness.

On the other hand, global credit-rating agencies like Fitch Ratings Inc. and DBRS Morningstar have only put their US ratings on watch for potential downgrade. Moody’s Investors Service noted that the mid-June interest payment on Treasuries will be crucial if the US wants to keep its AAA rating going forward. CCXI, jointly owned by Beijing Zhixiang Information Management Consulting Co. and Moody’s, has warned of multiple challenges faced by the Federal Reserve’s policy stance amidst the recent banking crisis, possibly leading to increased economic volatility.

The backdrop of this move is the ongoing negotiations between Republican and White House representatives, which are aimed at reaching an agreement to raise the debt limit and curtail government spending for at least two years. CCXI’s rating adjustment coincidentally comes amid escalating tensions and competition between the US and China.

Both countries have been blaming one another of committing “economic coercion,” with Beijing using the debt-ceiling dispute to accuse the US of seeding financial volatility around the globe. Furthermore, there has been increased friction over Taiwan’s status and security, China’s support for Russia following its invasion of Ukraine, and Washington’s increasing use of sanctions.


Information for this briefing was found via CCXI and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Trump Backtracks on China Tariffs After Economic Pressure Mounts

President Donald Trump is retreating from his hardline stance on Chinese tariffs, signaling a potential...

Wednesday, April 23, 2025, 07:46:05 AM

Elon Musk Reportedly Blocking Starlink From US In Taiwan

Rep. Mike Gallagher, Chairman of the House Committee on the Chinese Communist Party (CCP), has...

Tuesday, February 27, 2024, 03:47:00 PM

Trump Doubles China’s Tariffs To 20%: “Drugs Are Still Pouring Into Our Country”

The US is moving to increase its tariff rate on Chinese goods, with President Donald...

Friday, February 28, 2025, 02:09:00 PM

US And China Regulatory Crackdowns Caused Shares Of Dual-Listed Chinese Firms To Plummet

Big dual-listed Chinese tech names saw their shares fall in the respective American and Hong...

Friday, March 11, 2022, 03:38:00 PM

Why The Debt Ceiling Drama Could Actually Be A Real Problem This Time

Analysts are warning investors to brace themselves for the 118th Congress’ impending debt ceiling drama....

Sunday, January 15, 2023, 02:02:00 PM