Fitch Ratings

Fitch Ratings is upgrading 30 portions of collateralized loan obligations (CLOs), adding to hundreds of tranches previously considered for upgrades under a new methodology. The upgrades are part of a broader adjustment to rating criteria for CLOs.

Fitch Ratings reported that the default rate for 1,300 US private debt borrowers reached a record high in the second quarter. The increase was highlighted in a report released Thursday.

The U.S. economy grew at 1.5% in the second quarter of 2026, down from 2.1% in Q1, driven by consumer spending and AI-related business investment but weighed by rising imports. Inflation, as measured by the Fed's PCE price index, remained above the 2% target at 3.7% year-over-year, prompting some Fed officials to push for rate hikes.

US GDP growth slowed to 1.5% in Q2 2026 due to rising AI-related imports, though consumer spending increased by 3.2%. The Federal Reserve’s inflation measure remained above its 2% target, and underlying economic strength showed growth despite import-driven drag on GDP.

The US economy grew at a 1.5% annual rate in Q2 2026, with consumer spending rising but imports reducing growth. Inflation, as measured by the Fed's PCE index, remained above the 2% target at 3.7%, despite a slight monthly decline in prices.

Fitch Ratings affirmed Mexico's sovereign credit rating at BBB- with a Stable outlook in April 2026 but noted that the financial burden of state oil company Pemex effectively reduces the country's creditworthiness by one full notch.

Fitch Ratings upgraded Brazilian airline GOL Linhas Aéreas to 'B-' from 'CCC+' with a Stable Outlook on July 28, 2026. The upgrade marks a significant milestone in the carrier's recovery following its Chapter 11 restructuring.

Fitch Ratings upgraded Jane Street Group to investment-grade status, citing the market maker’s strong income growth throughout the economic cycle.

Barclays upgraded Pakistan's dollar bonds to 'overweight' due to improved oil market prospects and economic stability, citing stronger fiscal positions and external buffers. The report recommended specific sovereign bonds and a credit default swap, while noting potential credit rating upgrades in 2026.

Fitch Ratings warns that aggressive spending cuts, particularly in capital expenditure, could harm Pakistan's medium-term growth under its 2026-27 budget. While praising fiscal discipline under the IMF program, Fitch highlights challenges in achieving tax revenue targets and risks from elevated interest costs.

Citic Securities became the first mainland Chinese securities firm to achieve an A-category rating from Fitch Ratings. The rating agency assigned an A-minus long-term issuer default rating with a stable outlook to Citic Securities and its Hong Kong-based subsidiary, Citic Securities International.

Los Angeles County received top-tier credit ratings (triple-A from Fitch and Aa1 from Moody’s) despite facing nearly $5 billion in legal liability and reductions in federal and state funding. County officials stated the ratings will enable borrowing at lower interest rates, saving millions of dollars.

Fitch Ratings predicts the Strait of Hormuz will reopen in July. The reopening is expected to impact regional trade and security dynamics.

Argentine dollar bonds rallied after Fitch Ratings upgraded Argentina's credit score to its highest level since 2019 due to improved economic conditions. The upgrade is expected to revive demand for the country's dollar bonds. This development indicates a positive shift in Argentina's economic outlook.

Fitch Ratings downgraded the Philippines' economic outlook to 'negative' due to risks to growth, citing challenges in maintaining economic momentum. The report highlights concerns over potential slowdowns despite the country's ongoing development.