With a June 1 deadline to raise the debt ceiling approaching, Fitch Ratings said Thursday it was placing the U.S.’s “AAA” rating on negative watch to reflect deteriorating party divisions that have hampered a resolution to the debt ceiling crisis. While the ratings agency sees a “very low” chance of a default, it would cut the U.S. rating to AA- (in line with Ireland and South Korea) if one occurred.
A White House spokesman said Fitch's report stressed the need for bipartisan agreement and there was more evidence that debt default was not an option.
The U.S. Treasury Department said that the game around the debt ceiling has caused serious harm to businesses and American families, increased short-term borrowing costs for taxpayers, and threatened the U.S. credit rating. (Jinshi)