News

According to a report by Jinse Finance, international rating agency Fitch stated on the 21st that policy risks are casting a shadow over the U.S. credit outlook. In its mid-year update, Fitch downgraded the outlook for 25% of U.S. industries in 2025 to "deteriorating," citing increased uncertainty, slowing economic growth, and expectations that interest rates will remain high for an extended period. Fitch noted that recently passed tax and spending bills highlight the long-term challenges facing the U.S. fiscal outlook and will put pressure on healthcare-related industries. The combination of the tax bill and the extension of previous tax cuts is likely to keep the total U.S. government deficit above 7% of GDP and push the debt-to-GDP ratio to 135% by 2029. Fitch forecasts that by 2025, the default rates for U.S. high-yield bonds and leveraged loans will rise to 4.0%-4.5% and 5.5%-6.0%, respectively. Policy developments and industry-specific risks will remain the main drivers of rating trends this year.

According to Jinse Finance, Instacart’s outgoing CEO Fidji Simo will be joining OpenAI. Before officially starting next month, she outlined her vision for the newly established role of Chief Executive Officer of Applications at OpenAI. She wrote, “We must consciously build and share these technologies so that they bring more opportunities and prosperity to more people.” In early May, OpenAI announced that the 39-year-old Simo would take over operational responsibilities currently held by CEO Sam Altman, including finance and product development. At that time, the company stated that this would allow Altman to focus on broader strategy.