The international rating agency Fitch has sent the US long-term issuer default rating AAA to the Rating Watch list (rating under review) with a “negative” outlook amid protracted negotiations on the country’s public debt limit, the agency’s press service reports.
According to the report, being placed on review with a negative outlook “reflects increased political partisanship” that prevents the parties from “reaching an agreement to raise or suspend the US national debt ceiling, while the deadline for making this decision is approaching.”
“Fitch continues to expect the matter to be resolved before the deadline. Nevertheless, we see growing risks that the debt ceiling will not be raised in a timely manner, and, accordingly, that the United States may start to miss payments on some of its obligations, ”the message says.
The fact that the US authorities are “teetering on the brink and unable to essentially address the medium-term fiscal problems that will contribute to the growth of the budget deficit and debt burden” signals risks to the country’s creditworthiness, Fitch added.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
