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

 
 
 

48 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

Israel joins fight against Ebola in Africa
Jerusalem, Sep 22 (IANS) Israel has joined the international effort to help combat the Ebola outbreak across West Africa.
 
 
CO2 emissions set to reach record high in 2014
London, Sep 22 (IANS) Ahead of the New York Climate Summit, researchers have revealed that carbon dioxide (CO2) emissions, the main contributor to global warming, is set to rise again in 2014 - reaching a record high of 40 billion tonnes.
 
 
NASA spacecraft enters Mars' orbit to explore atmosphere
Washington, Sep 22 (IANS) After 10-month journey of 442 million mile, NASA's Mars Atmosphere and Volatile Evolution (MAVEN) mission entered into Mars orbit, the US space agency has said.
 
 
Israel approves rebuilding plan for communities near Gaza
Jerusalem, Sep 21 (IANS) The Israeli cabinet Sunday approved a $360 million development initiative for the communities in the country's south, near the Gaza border, who were hit hard in the recent bloody conflict between Israel and the Hamas.
 
 
 

Latest from the Network

Israel joins fight against Ebola in Africa
Jerusalem, Sep 22 (IANS) Israel has joined the international effort to help combat the Ebola outbreak across West Africa. Doctors from the country's leading medical institutions and other healthcare professionals are...
Read more on Business Balla
 
Asian Games: Dipika loses in semi-final, settles for bronze
Incheon, Sep 22 (IANS) India's squash star Dipika Pallikal lost her semi-final women's singles match to World No.1 Nicol David of Malaysia and settled for the bronze medal in the 17th Asian Games at the Yeorumul Squash...
Read more on Sport Balla
 
CO2 emissions set to reach record high in 2014
London, Sep 22 (IANS) Ahead of the New York Climate Summit, researchers have revealed that carbon dioxide (CO2) emissions, the main contributor to global warming, is set to rise again in 2014 - reaching a record high...
Read more on Politics Balla
 
Asian Games: China's team gold reinstated, Ayonika seventh
Incheon, Sep 22 (IANS) India's Ayonika Paul Monday finished a disappointing seventh in the women's 10-metre air rifle event while China were confirmed winners of the team gold after judges overturned an earlier...
Read more on Sport Balla
 
Lena Dunham doesn't blame women for leaked photos
Lena Dunham says women should be free to take nude pictures of themselves without a risk of them being leaked online. The 'Girls' star has spoken out against hackers who have stolen alleged explicit images of...
Read more on Celebrity Balla
 
Jordan arrests 11 IS militants
Amman, Sep 22 (IANS) Jordan has arrested 11 Islamic State (IS) militants who entered the country from Syria. The militants after their arrest Sunday, admitted that they came from Syria acting upon orders from IS...
Read more on Politics Balla
 
Fiji coup leader to be sworn-in as PM
Suva, Sep 22 (IANS) Fiji coup leader in 2006, Voreqe Frank Bainimarama, will be sworn-in Monday as the prime minister of the country. Bainimarama's Fiji First party has won the 2014 general election, raking 293,714 of...
Read more on Politics Balla
 
Asian Games: Indian women clinch 25m pistol bronze
Incheon, Sep 22 (IANS) Indian shooters kept up their fine performance in the 17th Asian Games with the women's team winning the bronze medal in the 25 metre pistol event at the Ongnyeon International Shooting Range...
Read more on Sport Balla
 
Japanese PM heads for UN General Assembly
Tokyo, Sep 22 (IANS) Japanese Prime Minister Shinzo Abe Monday left for New York to attend the 69th session of the UN General Assembly and is expected to have talks with his counterparts during the trip. According to...
Read more on Politics Balla
 
Russia hopes dialogue continues in Ukraine
Moscow, Sep 22 (IANS) Russia said that the laws adopted by Ukraine last week would give impetus to the further development of peaceful dialogue in that country. "An entire package of laws has been passed in Ukraine...
Read more on Politics Balla