Analysis: Rating agencies won't cut U.S. on fiscal cliff - yet |
| Reuters - Dec 21, 2012 |
The stalled progress in the Washington budget battle may be rattling markets but the gridlock among policymakers will not move the rating agencies to downgrade the United States - yet.
The U.S. credit rating is far from safe. All three major agencies have negative outlooks on the United States, which suffered its first downgrade in history last year when Standard & Poor's stripped it of its triple-A rating.
But the fiscal cliff is only one event in a series of issues that will see ratings agencies looming over Washington for months.
Investors sold off riskier assets such as stocks on Friday and scooped up safe-havens such as the dollar and U.S. Treasuries after Republican Representative John Boehner failed to find enough support from his own party to push a measure raising taxes on millionaires through the House of Representatives.
With Boehner's leadership as speaker of the House on the line, markets worry he can't get any tax plan through Congress at all - much less the stricter terms Obama wants in what's becoming the latest drawn-out political budget debacle.
Read Full Article from Reuters
- Posted: 2012-12-21 16:29:25
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