Skip to comments.Fitch warns on U.S. rating as debt ceiling fight looms
Posted on 01/15/2013 11:58:42 PM PST by Olog-hai
The United States faces a material risk of losing its AAA status if there is a repeat of the wrangling seen in 2011 over raising the countrys self-imposed debt ceiling, credit ratings firm Fitch said on Tuesday.
The United States scraped up against its $16.4 trillion debt ceiling on Dec. 31 and is now employing special measures to meet its financial obligations. The Treasury Department said those steps could be exhausted by mid-February.
Despite Decembers deal by U.S. politicians to avoid the fiscal cliff of spending cuts and tax hikes, Fitchs head of sovereign ratings, David Riley, said pressure on the country's rating was increasing.
If we have a repeat of the August 2011 debt ceiling crisis, we will place the U.S. rating under review. There will be a material risk of the U.S. rating coming down, Riley said at a conference hosted by the firm.
(Excerpt) Read more at reuters.com ...
All the Fitch people worry about is gov’t squabbling and inability to cut the deficit. They don’t appear to worry about US defaulting. The only ones mentioning that are Obama, Bernanke, and the MSM.
That’s because it’s pure deception and a fake argument. The US won’t default, as tax receipts still come in and debts are serviced. If there was any danger of that, the ratings agencies would be talking about “A” ratings now.
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