Fitch: "U.S. government shutdown has no short-term impact on sovereign credit rating"

Source
JH Kim

Summary

  • International credit rating agency Fitch said that even if a U.S. government shutdown occurs, it would not have a short-term impact on the sovereign credit rating and stable outlook.
  • Fitch said the shutdown could cause short-term uncertainty, such as disruptions to administrative operations and delays in the release of economic indicators, but it does not pose a direct threat to debt repayment capacity or creditworthiness.
  • Fitch added that if fiscal uncertainty persists over the long term, it could be a burden on the sovereign credit rating.

According to economic breaking news channel Walter Bloomberg on the 1st (local time), international credit rating agency Fitch Ratings said that even if a U.S. government shutdown (a temporary suspension of operations) occurs, it would not have a short-term effect on the United States' sovereign credit rating 'AA+' and its stable (Stable) outlook.

Fitch explained that a shutdown could cause short-term uncertainty, such as disruptions to administrative operations and delays in the release of economic indicators, but it would not pose a direct threat to the U.S.'s ability to repay debt or to its creditworthiness.

However, it added that if fiscal uncertainty persists over the long term, it could become a burden on the country's sovereign credit rating.

publisher img

JH Kim

reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
What did you think of the article you just read?