Fitch Threatens to Lower US Credit Rating
Fitch Ratings warned that it would drop the top rating of the United States if the debt ceiling wasn't raised in a deal between the White House and reluctant Republicans.
"Fitch's warning comes as President Barack Obama and Republican leaders in Congress jostle over a vote to raise the country's borrowing limit," wrote the Wall Street Journal. "And just as the credit-rating firms are closely observing the action in Washington, lawmakers there -- and investors around the world -- are keeping an eye on the analysts who hold the fate of the U.S.'s credit rating in their hands. A lower rating could raise the country's borrowing costs or at least signal to investors that its fiscal house isn't in top shape."
Source: Latinos Post. Read full article. (link)
Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time.
-
"A lower rating could raise the country's borrowing costs or at least signal to investors that its fiscal house isn't in top shape."
So only a lower rating will cause that result? Not the activity that might cause that lower rating?
Hmm; I'll bet the market votes otherwise.