ICYMI: Fitch Ratings Warns that Political Brinkmanship over the Debt Limit Would Harm Credit Rating
Fitch Ratings confirmed what a growing list of private sector leaders, state and local officials, and community organizations have warned of: the dire consequences for the U.S. credit rating should the government fail to raise the debt ceiling.
In a memo released today, the credit rating company writes: "If this were not done in a timely manner, political brinkmanship and reduced financing flexibility could increase the risk of a U.S. sovereign default."
Should a missed payment occur, "Fitch would downgrade the U.S. sovereign IDR to 'Restricted Default' (RD) until it judged the default event was cured," the memo adds.
Read the full post here.
Joseph R. Biden, ICYMI: Fitch Ratings Warns that Political Brinkmanship over the Debt Limit Would Harm Credit Rating Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/352800