Fitch Places U.S. Under Review For A Credit Downgrade | WAMU 88.5 - American University Radio
Filed Under:

Fitch Places U.S. Under Review For A Credit Downgrade

Play associated audio

Fitch Ratings, one of the big three credit ratings agencies, issued a warning shot today, saying that while it affirmed the United States' AAA credit rating, it was placing it on "rating watch negative."

In other words, it was placing the country's long-term credit rating under review for a potential downgrade.

The main reason? The debacle in Washington. Remember, the last time a debt ceiling debate got this hot and heavy, S&P downgraded the U.S.'s long-term credit rating to AA-plus.

"The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S.," Fitch said in a statement. "This 'faith' is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns."

Reuters reports the U.S. Treasury said the threat from Fitch is a reminder of just how close the country is from defaulting for the first time in history.

"The announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy," a Treasury spokesperson told Reuters.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

The Gift Of Eternal Shelf Life: 'Tuck Everlasting' Turns 40

In Natalie Babbitt's celebrated classic, a young girl stumbles upon a secret spring and the family the spring has given eternal life to. Babbitt says she wrote the book to help kids understand death.
NPR

Food Industry Drags Its Heels On Recyclable And Compostable Packaging

A new report from two environmental groups reviewed the recyclability and compostability of packaging from 47 food companies. It found few examples of companies that have prioritized waste reduction.
NPR

4 Reasons Why It's Veto Season At The White House

In his first six years in office, President Obama issued just two vetoes, the fewest of any president going all the way back to James Garfield. But that's about to change.
NPR

With 'Discover' Feature, Snapchat Bucks Social Trend In News

Snapchat says social media likes and shares aren't what makes a story important. The ephemeral messaging app has rolled out Discover, featuring multimedia articles from major news brands.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.