Even if the Treasury withholds payment from some citizens so it can make debt payments, doing so "would damage the perception of U.S. sovereign creditworthiness and the economy," while diminishing the U.S. status and prestige in global financial markets, Mr. Parker said.
"The U.S. authorities have not raised the federal debt ceiling in a timely manner," said Fitch managing director Ed Parker. "Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default."
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