Fitch Keeps U.S. Rating On Negative Watch Even After Debt-Cap Deal
(Bloomberg) -- The US government's AAA credit ranking will stay on negative watch at Fitch Ratings even though the country has sidestepped for now the risk of a default with the passage through Congress of new legislation to suspend the statutory debt ceiling.
The credit assessor warned last week that the US's top rating was under threat, moving it to “rating watch negative” amid the then-ongoing political standoff that threatened to trigger a potential default of the nation's debt. The Senate on Thursday passed legislation to suspend the US debt ceiling through the 2024 election, and it now only has to go to President Joe Biden for signature to become law.
“Although the resolution of the U.S. debt limit impasse allows the government to meet its obligations” Fitch is maintaining the negative watch while it considers “the full implications of the most recent brinkmanship episode and the outlook for medium-term fiscal and debt trajectories,” Richard Francis, Fitch's senior director of sovereign rating said in a note with a colleague.
Strategists at TD Securities last week warned clients that Fitch could possibly even downgrade the US rating regardless of the outcome of debt-ceiling discussions.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
