360° Coverage : Fitch puts US triple-A credit rating under negative watch

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

YouTube Videos

 
 
 

45 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

Nigeria to get Japanese drug for Ebola treatment
Abuja, Sep 2 (IANS) Nigeria will soon get a Japanese drug to treat Ebola, the country's Health Minister Onyebuchi Chukwu said Monday.
 
 
Japan to aid connectivity upgrade in northeast India
Tokyo, Sep 1 (IANS) India and Japan Monday decided to strengthen cooperation for improving connectivity and socio-economic development in northeastern states of India.
 
 
Three Ebola cases recorded in Nigeria oil hub
Abuja, Sep 1 (IANS) At least three cases of Ebola virus disease (EVD) have been recorded in Nigeria's oil hub of Port Harcourt, where a fatality was confirmed last week, the country's Minister of Health Onyebuchi Chukwu said here Monday.
 
 
India, Japan to elevate strategic partnership
Tokyo, Sep 1 (IANS) Prime Minister Narendra Modi Monday said relations with Japan were of the "highest priority" for his government and announced a slew of initiatives, including turning the strategic partnership into a "special" partnership and a fast-track channel for Japanese investors.
 
 
 

Latest from the Network

Sania advances in US Open women, mixed doubles
New York, Sep 2 (IANS) It was a great day for Sania Mirza as she made it to the quarter-finals of women's doubles and the semi-final of mixed doubles at the US Open tennis event here. But it was the end of the road...
Read more on Sport Balla
 
Modi stresses on women empowerment, education
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday stressed on the need for women's empowerment in the present-day world. Modi, who was addressing students of the Sacred Hearts University here, said he has...
Read more on Politics Balla
 
Country with knowledge will lead world: Modi
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday said that 21st century is the century of knowledge and the country with "knowledge and information will lead the world". "...the one who has knowledge and...
Read more on Politics Balla
 
Eight killed in China landslides
Beijing, Sep 2 (IANS) At least eight people were killed and 24 missing Tuesday after heavy rains caused landslides in China's Chongqing province. Rescue teams, including fire-fighters and police, have evacuated over 7...
Read more on Politics Balla
 
Spain returns Colombian treasure
Bogota, Sep 2 (IANS/EFE) Spain has returned to Colombia 691 indigenous artefacts seized in a police operation 11 years ago. The items - from different epochs, cultures and regions, include objects with organic and...
Read more on Celebrity Balla
 
Travel across India for enhanced learning: Modi
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday asked IT experts to step out of their rooms and travel across India to enhance their learning. "You will learn as much outside your rooms as you will learn...
Read more on Politics Balla
 
New anti-terror measures to be introduced in Britain: Cameron
London, Sep 2 (IANS) British Prime Minister David Cameron Monday said his country will introduce a slew of measures to prevent terror suspects from travelling abroad, imposing tougher constraints on suspected...
Read more on Politics Balla
 
I don't enjoy my voice: Romeo Santos
Los Angeles, Sep 2 (IANS) Singer Romeo Santos is often baffled by fans who pay to listen to him sing, because he hates his own voice. The 33-year-old says he hates both his speaking and singing voice, reports...
Read more on Celebrity Balla
 
Eight killed in France building collapse
Paris, Sep 2 (IANS/EFE) As many as eight people have died due to a building collapse in Paris till Monday, French emergency management services said. Firefighters had recovered before dawn Monday the bodies of two...
Read more on Politics Balla
 
Modi focuses on women's empowerment, education
Tokyo, Sep 2 (IANS) Prime Minister Narendra Modi Tuesday stressed on the need for women's empowerment in the present-day world as he began the fourth day of his visit to Japan. Modi, who was addressing students of the...
Read more on Politics Balla