Big Three credit rating agency Fitch Ratings Inc. downgraded major U.S. mortgage lenders Freddie Mac and Fannie Mae from the top AAA rating to a AA+ rating on Wednesday.
The downgrade is linked to Fitch’s demotion of the U.S. sovereign rating on Tuesday, which also went from a AAA rating to AA+.
The demotion signifies international concerns surrounding the United States’ ability to pay off its debt obligations.
As of 2023, Freddie Mac and Fannie Mae are responsible for guaranteeing more than two-thirds of all U.S. mortgages.
