1 Updates
Fitch puts US triple-A credit rating under negative watch
Photo Credit: , Getty Images

Fitch puts US triple-A credit rating under negative watch

Oct 15 2013, 9:36pm CDT | by IANS

New York, Oct 16 (IANS) Fitch Ratings Tuesday placed the 'AAA' credit rating of the US on rating watch negative (RWN), saying that delays of lifting the debt ceiling would cause volatility and damage US creditworthiness.

New York, Oct 16 — Fitch Ratings Tuesday placed the 'AAA' credit rating of the US on rating watch negative (RWN), saying that delays of lifting the debt ceiling would cause volatility and damage US...

Filed under: news

Full Story below YouTube Videos

 
 

 

26 weeks ago

Fitch puts US triple-A credit rating under negative watch

Oct 15 2013, 9:36pm CDT | by IANS

New York, Oct 16 (IANS) Fitch Ratings Tuesday placed the 'AAA' credit rating of the US on rating watch negative (RWN), saying that delays of lifting the debt ceiling would cause volatility and damage US creditworthiness.

New York, Oct 16 — Fitch Ratings Tuesday placed the 'AAA' credit rating of the US on rating watch negative (RWN), saying that delays of lifting the debt ceiling would cause volatility and damage US creditworthiness.

The US Treasury Secretary has said extraordinary measures will be exhausted by Oct 17, but the US authorities have not raised the federal debt ceiling in a timely manner before the deadline, said the rating agency in a statement, Xinhua reported.

Fitch stated that failure by the US government to honour interest and/or principal payments on the due date of US Treasury securities would lead Fitch to downgrade the US sovereign credit rating to 'restricted default' until the default event was cured.

Although the treasury would still have limited capacity to make payments after Oct 17, it would be exposed to volatile revenue and expenditure flows, Fitch added.

Moreover, the delays of payments to suppliers and employees, as well as social security payments to citizens, would damage the perception of US sovereign creditworthiness and the economy.

According to the statement, it expects to resolve the RWN by the end of the first quarter of 2014 at the latest. The outlook on the long-term ratings was previously negative.

However, Fitch believes that the debt ceiling will be raised soon, but the political brinkmanship and reduced financing flexibility could increase the risk of a US default.

Despite the negative watch, Fitch confirmed the 'AAA' on US credit rating based on the country's strong economic and credit fundamentals, including its highly productive and diversified economy, extraordinary monetary and exchange rate flexibility, and the exceptional financing flexibility afforded by the global reserve currency status of the US dollar.

The last downgrade took place in August of 2011 when Standard & Poor's, another major rating agency, lowered US credit rating to AA+ as the country experienced a fiscal standstill. Currently Moody's rates the US as Aaa with a stable outlook.

IANS

Source: IANS

 

Don't miss ...

 

blog comments powered by Disqus

Latest stories

How The Corinthia Hotel Lisbon Became Extraordinairly Energy Efficient
In an interview with Pedro Ferreira, engineer at Corinthia Hotel Lisbon, we discussed the hotel’s efforts to become more and more energy efficient—and why—resulting in the property being awarded the Western Europe...
 
 
Consumers Hunt For Easter Bargains
Easter weekend is time to celebrate a religious holiday, spend time with family and friends and welcome the upcoming spring weather. Consumers look forward to shedding winter coats, planting flowers and riding bikes in...
 
 
Social Intrapreneurism: How Business Innovators Are Helping To Build A More Sustainable World
In a joint interview with Professor David Grayson, Melody McLaren, and Heiko Spitzeck, we discussed their new book, Social Intrapreneurism and All That Jazz: How Business Innovators are Helping to Build a More...
 
 
How To Repeat Your Initial Success: Coming Up With An Encore
Some 30 years ago, I began work on my first  book: Sweat Equity which profiled America’s best entrepreneurs. Even though the book is long out of print (so this is as far from a plug as possible), I thought it would be...
 
 
 

Latest from the Network

Emails Reveal What Samsung Planned After Steve Jobs’ Death
Back in October of 2011, Tim Cook announced that they were going to release the iPhone 4s as well as the iPhone 5, with preorders starting the next week. Samsung had a meeting over what they could do about this, in an...
Read more on Apple Balla
 
Yahoo Wants Apple To Switch For iOS Searches
Apple devices have used Google search engine results for a long time now, but that might be changing if other forces have their way. Re/code is now reporting that the CEO of Yahoo, Marissa Mayer, would like to convince...
Read more on Apple Balla
 
Experts Encouraging Investments In Apple Stock
According to an Analyst at Morgan Stanley, Apple’s stock isn’t seen as a risk at the moment and if anyone is still trying to make up their mind about buying in, this is the time.During research and development phases at...
Read more on Apple Balla
 
How The Corinthia Hotel Lisbon Became Extraordinairly Energy Efficient
In an interview with Pedro Ferreira, engineer at Corinthia Hotel Lisbon, we discussed the hotel’s efforts to become more and more energy efficient—and why—resulting in the property being awarded the Western Europe...
Read more on Business Balla
 
Consumers Hunt For Easter Bargains
Easter weekend is time to celebrate a religious holiday, spend time with family and friends and welcome the upcoming spring weather. Consumers look forward to shedding winter coats, planting flowers and riding bikes in...
Read more on Business Balla
 
Social Intrapreneurism: How Business Innovators Are Helping To Build A More Sustainable World
In a joint interview with Professor David Grayson, Melody McLaren, and Heiko Spitzeck, we discussed their new book, Social Intrapreneurism and All That Jazz: How Business Innovators are Helping to Build a More...
Read more on Business Balla
 
How To Repeat Your Initial Success: Coming Up With An Encore
Some 30 years ago, I began work on my first  book: Sweat Equity which profiled America’s best entrepreneurs. Even though the book is long out of print (so this is as far from a plug as possible), I thought it would be...
Read more on Business Balla
 
Onsite Generation: Can Utilities Rethink Their Business Proposition?
Can utilities adapt to emerging innovations that allow customers to “bypass” their services? Or, will power companies become the modern-day dinosaur? The trend is toward more independent customers who are able to...
Read more on Business Balla
 
Sungale’s Smart TV Box is Bringing the Fight to the Internet Streaming TV Market
Chino, CA, April 19, 2014 --(PR.com)-- Sungale, the consumer electronics brand, has been in the Internet TV Box arena for a number of years now, and it is ready to fight for its place at the top. There are a number of...
Read more on Business Balla
 
TraceGains Looks at Future of Foods at Flavor and Extract Manufacturers Association Event in May
Westminster, CO, April 19, 2014 --(PR.com)-- TraceGains will attend the Flavor and Extract Manufacturers Association (FEMA) 105th Annual Convention May 4-7, 2014 at the Marco Island Marriott Beach Resort in Marco...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla