Fitch downgrades Fannie Mae and Freddie Mac

Budrigannews.com – Fitch has set the appraisals of U.S. contract finance goliaths Fannie Mae and Freddie Macintosh (OTC:) as negotiations between lawmakers in the United States to raise the debt ceiling dragged on without reaching a conclusion.

This comes after the evaluations office on Wednesday had cautioned that the U.S. FICO score could be minimized in the event that an obligation roof bargain was not reached soon.

Fitch said in a statement on Thursday evening that the move reflected “uncertainty surrounding the resolution of the RWN (Rating Watch Negative) on the U.S.” Negotiators for Democratic President Joe Biden and top congressional Republican Kevin McCarthy appeared to be getting close to a deal on Thursday to cut spending and raise the government’s $31.4 trillion debt ceiling, but there was little time left to avoid default.