© Reuters. Rating agencies put US debt under review
After Fitch, Dbrs also decided to put the US sovereign rating under observation with negative implications due to the stall on the increase in the debt ceiling
The major rating agencies have not yet pronounced themselves, but the impasse on the increase in the US public debt ceiling has also led Dbrs put the US credit rating under review. A choice that comes shortly after that of Fitch. In both cases the revision has negative implications.
THE REASON FOR THE DECISION
The decision, DBRS said, “reflects the risk that Congress will fail to raise or suspend the debt ceiling in a timely manner. If Congress does not act, the United States federal government will not be able to service all of its debts.” The Secretary of the Treasury Janet Yellen he reiterated that date X could arrive as early as June 1st. “Judging by the latest data on net daily inflows into the general account of the Treasury, we believe it is reasonable to assume that date X could arrive within weeks, if not days,” the experts point out…
** This article was written by FinanciaLounge