Goldman Sachs 'bottom line' on the Fitch Ratings downgrade of US long term debt:
- The downgrade mainly reflects governance and medium-term fiscal challenges, but does not reflect new fiscal information.
- The downgrade should have little direct impact on financial markets as it is unlikely there are major holders of Treasury securities who would be forced to sell based on the ratings change.
Bolding is mine.
The news from earlier:
- Fitch downgrades USA long-term credit rating to AA+ from AAA
- Here is what happened in markets the last time the US was downgraded: Stocks, FX and gold
- Fitch placed USA on negative watch back in May, now has cut the US rating from triple A
- EUR/USD spiking higher, USD/JPY lower after US rating downgrade
- US equity futures have dropped, hard, upon reopening after the downgrade
SPX yet to fill its gap: