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Global rating agencies have warned of a downgrade of the country
if a deal is not reached soon. Following are some of the actions
by the agencies in recent days:
Fitch:
Fitch earlier this week put the U.S. credit rating on watch for
a possible downgrade. The agency currently rates the country's
debt "AAA" - its highest rank.
Fitch said it still expects the standoff to be resolved before
the X-date, the deadline after which the federal government
would not have enough finances to meet its payments.
Treasury Secretary Janet Yellen has insisted that the actual
X-date is June 1, but some Republicans have questioned that
deadline.
Moody's:
The agency expects the U.S. government will continue to pay its
debts on time, but public statements from lawmakers during the
negotiations could prompt a change in its assessments of the
U.S. credit outlook before a potential default.
Moody's currently has an "Aaa" rating for the U.S. government
with a stable outlook - its highest creditworthiness evaluation.
S&P Global:
The agency has not put U.S. ratings on watch yet, but has had
its second-highest rating on the country since 2011, in contrast
to Fitch and Moody's.
That year, S&P took a bold call to cut U.S. rating to "AA-plus"
from its highest "AAA" even as a default was narrowly averted.
The agency cited heightened political polarization and
insufficient steps to right the nation's fiscal outlook for its
decision.
DBRS Morningstar:
On Thursday, DBRS Morningstar put the U.S. on review for a
downgrade, warning of the implications of not reaching a deal
soon.
Another agency, Scope Ratings, also placed its 'AA' rating for
the U.S. under review earlier this month for a possible
downgrade due to longer run risks associated with the debt
ceiling.
(Reporting by Niket Nishant in Bengaluru; Editing by Sriraj
Kalluvila)
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