Fitch Rating Company, expects an imminent downgrade of the US credit rating

Fitch Ratings warned of an imminent downgrade of the US credit rating, despite the US Congress’s approval of a bill to solve the sovereign debt ceiling crisis.

Reuters New Agency quoted the company as saying today:” It keeps the United States under negative supervision for the rating and plans to make a decision on a possible downgrade by the end of next September”.

Fitch Company, expressed deep concern about recurring brinkmanship and exacerbating polarization in Washington, and said in a statement, “We believe that repeated political confrontations over debt limits and last-minute suspensions ahead of schedule when the Treasury’s cash position is exhausted and extraordinary measures reduce confidence in governance with respect to financial matters and debts.

In a recent research note, Richard Francis, senior director of sovereign ratings at Fitch Ratings, said a downgrade would raise the government’s borrowing cost, forcing Washington to spend more on interest and less on education, health care, defense and other priorities.

Fitch, one of the three major ratings companies, put the United States on watch for a possible downgrade last week, before House Republicans and US President Joe Biden reached a compromise to raise the debt ceiling.

Leen Al Salman