Fitch Downgrades Fannie Mae, Freddie Mac After US Rating Cut

A man walks through a plaza at the new Fannie Mae headquarters in Washington on Oct. 4, 2022. Kevin Lamarque/Reuters

Ratings agency Fitch on Wednesday downgraded U.S. mortgage finance giants Fannie Mae and Freddie Mac Long-Term Issuer Default Ratings (IDR) and senior unsecured debt ratings to ‘AA+’ from ‘AAA’ after the U.S. rating downgrade on Tuesday.

The agency said the cut was a result of Tuesday’s downgrade and was “not being driven by fundamental credit, capital or liquidity deterioration at firms.”