Fitch Ratings downgraded the United States’ long-term credit rating from AAA to AA+ on August 1. Citing recent debt-ceiling standoffs and the country’s ballooning fiscal deficits, Fitch’s downgrade is reminiscent of a similar move by S&P Global Ratings in 2011. Officials in Washington were dismissive of Fitch’s actions, referencing the strength of the American economy and U.S. Treasury Debt’s continued role as the world’s safest and most liquid asset for global investors. However, it’s worth noting that Fitch has maintained the highest F-1+ rating for short-term U.S. debt.

North Carolina CLASS will continue to closely monitor developments from the rating agencies and Washington, D.C., maintaining focus on the safety and liquidity of your funds. Much like S&P Global Ratings’ downgrade of the U.S. to AA+ in 2011, this may prove to have little to no impact on North Carolina CLASS. Until then, North Carolina CLASS will remain vigilant as the market digests this new development. As always, we will continue to provide further updates as information, policies, and actions arise.

All comments and discussions presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. North Carolina CLASS is not a bank. An investment in North Carolina CLASS is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the North Carolina CLASS Prime Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.