Protracted Debt-Limit Battle Poses Risks to U.S. Credit Standing
- Moody’s expects agreement before financing wall is hit
- Fitch says top-rating review possible if x-date surpassed
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The U.S. political gridlock that has shut down part of the government risks running into a crucial deadline that would limit the Treasury’s borrowing ability, if left unresolved, and potentially threaten America’s top-credit standing.
While the looming end of a debt-ceiling suspension on March 1 won’t trigger credit-rating action, a prolonged standoff over the country’s debt limit well past that date would increase the risk of a technical default and raise the likelihood of a downgrade, according to some ratings analysts.