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Rating downgrade to affect US reputation — expert

"This event will also have a negative political impact on the US democratic party and give a new trump card to republicans to blame democrats for the failure of the economic policy," Sergey Grishunin noted

MOSCOW, August 2. /TASS/. The US rating being downgraded from AAA to AA+ by Fitch rating agency will only affect the country’s reputation, managing director of the NRA rating service Sergey Grishunin told TASS.

Earlier, Fitch downgraded the long-term issuer default rating of the US from AAA to AA+. The rating agency justified the move by the expected deterioration of the financial situation over the next three years, the high and growing debt burden of the government on the whole and weak governance.

"In our opinion, Fitch’s downgrade affects only the reputation and not the financial system of the US. US government securities remain in the minds of investors as being the most reliable and the dollar remains the sole reserve currency," the expert said.

"This event will also have a negative political impact on the US democratic party and give a new trump card to republicans to blame democrats for the failure of the economic policy," Grisuinin noted.

Furthermore, the US rating downgrade gives an extra motive to developing economies to think of creating their own currency basket as a payment tool and establishing a new international payment system, he added.