Fitch Ratings on Wednesday said it is worried about the direction of the political debate on raising the US debt ceiling, although it still believes lawmakers will reach an agreement on the issue.
"Clearly the political signals which are coming (from Washington) are a source of concern," David Riley, head of sovereign ratings at Fitch, told Reuters in an interview.
"But we know from previous experiences -- both with the government shutdown and previous episodes with the debt ceiling -- that although you get a lot of brinksmanship, ultimately it does get resolved," Riley said.
Fitch on Wednesday said it would downgrade the US issuer rating to "restricted default" and lower all US Treasury securities to the junk level of "B-plus" if the government misses some coupon payments on August 15.
A "restricted default" means the issuer has experienced a payment default on a bond, but has not entered bankruptcy.
source-money control
Stevenson
management trainee- fundamental analyst
DENIP Consultants Pvt Ltd
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