what is fitch ratings 
fitch ratings is an international credit rating agency based in new york city and london investors use the company s ratings to determine which investments are less likely to default and yield a solid return fitch bases the ratings on several factors such as what kind of debt a company holds and its sensitivity to systemic changes like interest rates understanding fitch ratingsfitch is one of the top three credit rating agencies in the world the fitch rating system is very similar to other rating agencies in that they all use a letter system the fitch rating system breaks entities into two categories investment grade and non investment grade the investment grade ratings are the non investment grade ratings are fitch ratings and sovereign nationsfitch offers sovereign credit ratings that describe each nation s ability to meet its debt obligations sovereign credit ratings are available to investors to help give them insight into the level of risk associated with investing in a particular country countries will invite fitch and other credit rating agencies to evaluate their economic and political environments and financial situations to determine a representative rating it s essential for countries to obtain the best sovereign credit rating possible particularly in the case of developing nations as it aids in accessing funding in international bond markets 2in 2018 fitch awarded the united states the highest aaa long term sovereign credit rating on the lower end was brazil with a bb 34 however in 2023 fitch downgraded the u s to aa a rating between aaa and aa that signifies a slight reduction in confidence that the country can pay its debts but the agency believes the u s is still a high quality investment with a low risk of defaulting 5country ratings are important because they can influence international investor sentiments which is why the u s downgrade to aa is significant fitch ratings of companies and othersfitch ratings also analyzes the issues of companies local governments and agencies and financial institutions for their creditworthiness for example the agency analyzed two of jacksonville florida s special revenue bonds awarding them an aa investment grade rating this means the municipality is rated between a low risk of default and a low expectation of default on its two issuances which total more than 290 million the bonds are intended to refund earlier bond issues and finance capital equipment and improvements in the city 6at the financial institution level fitch rated london based national westminster bank mortgage covered bonds at aaa with a stable outlook this rating is the highest available signifying fitch s confidence in the bank s bonds 7