This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fitch: U.S. Risks Downgrade of AAA Rating

NEW YORK ( TheStreet) -- Fitch Ratings said Wednesday the U.S. probably wouldn't be able to preserve its "AAA" sovereign ratings status if it didn't make "full and timely" payments on its debt.

The ratings agency said it was confident that the U.S. would raise its debt ceiling and make payments on the debt, but that "such a 'tail risk' for the world's most important fixed-income issuer warrants comment as well as clarity from Fitch for users of its ratings ..."

Disputes between Republicans and Democrats have hampered measures to raise the debt ceiling. The U.S. reached the debt limit of $14.3 billion last month.

Fitch issued a similar watch statement in 1995 when it considered a default on Treasury interest payments as possible, but dropped it after Congress and former President Bill Clinton agreed to raise the maximum amount that could be borrowed.

Fitch said it would downgrade the U.S. to "restricted default" if it did not honor its debt obligations by Aug. 15.

Moody's warned last week it might consider cutting the U.S.'s credit rating if there wasn't a deal to raise the debt ceiling.

-- Written by Joe Deaux in New York.

>To submit a news tip, send an email to: tips@thestreet.com

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TSLA $265.00 4.70%
YHOO $37.71 -0.33%
AAPL $123.38 0.50%
FB $95.75 1.70%
GOOG $628.02 0.12%

Markets

Chart of I:DJI
DOW 17,630.27 +189.68 1.09%
S&P 500 2,093.25 +25.61 1.24%
NASDAQ 5,089.2060 +49.43 0.98%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs