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

Can NBC's New Tiger Lily Overcome The Character's History?

Alanna Saunders, the actress cast to play Tiger Lily in NBC's forthcoming production of PeterPan, has Native American ancestry, one of many points of contention in previous castings.
NPR

California Cracks Down On Farmers' Market Cheaters

Did your local farmer really grow that heirloom apple he just sold you? California wants to know, so it's sending more inspectors out to make sure the produce sold at markets is really local.
NPR

Top Spending PAC Aims To Keep The Senate In Democratic Hands

Senate Majority PAC, run by allies of Senate Majority Leader Reid, is the top-spending superPAC in the midterm election season. Its donors are essentially a compilation of the party's big-donor base.
NPR

Tech Firms Chip Away At Credit Cards' Share Of Transactions

Companies including PayPal and Apple are competing to convince merchants and consumers to use their swipe-and-go mobile payment systems. Credit card breaches may speed up the use of digital wallets.

Leave a Comment

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