Debt ceiling could hurt U.S. credit rating
The federal Bureau of Economic Analysis reported its gross domestic product for the New York region rose 0.8 percent in 2011 to $1.28 trillion compared with a year earlier. Credit: iStock
The United States could lose its top credit rating for the second time from a leading agency if there's a delay in raising the country's debt ceiling, Fitch Ratings warned yesterday.
There are fears that the debate will descend into the squabbling and political brinkmanship that marked the last effort to raise the ceiling in the summer of 2011.
"The pressure on the U.S. rating, if anything, is increasing," David Riley, managing director of Fitch Ratings' global sovereigns division, said at a London conference. "We thought the 2011 crisis was a one-off event . . . if we have a repeat we will place the U.S. rating under review."
If that happens, Riley said, there was "a material risk" of the rating coming down, which could mean the United States would face steeper costs when it comes to servicing its debt.
Another major ratings agency, Moody's, also has a negative view on the U.S. outlook.
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