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Credit Rating Drops After Debt Ceiling Crisis Ends

You are currently viewing Credit Rating Drops After Debt Ceiling Crisis Ends
  • Post category:News

The United States of America, known for it’s amazingly dangerous circumstances of being too close to the debt ceiling, has finally stopped getting too close to disaster as the debt ceiling has stopped becoming so imminent to destroying the American economy, as it has been handled for the time being. However, this doesn’t go without any damages to the U.S.A. the “AAA” credit rating has not been able to stay consistent. As a result, the Fitch credit agency has had to lower the rating overall to “AA+.” A very unfortunate circumstance, given that the negative watch has to be implemented for the USA. The Debt Limit Agreement would allow the government to come to its obligations. The full implications for the trajectories of the fiscal and debt persuasions can have massive ramifications on the credit rating of America.

Fitch mentioned how the past week showed that a risk of not meeting the deal would show an improper responsibility on the part of the government, therefore refusing the obligations in a proper timeline.

Otherwise, it will further be inconsistent with the future rating it upholds. Analysts believe that after House Republicans reached a deal with the White House, Rating agencies are going to downgrade the U.S. government, just like what occurred in 2011, when the same thing happened between S&P and the U.S. in a similar circumstance.

On Thursday, of the past week, the U.S. Senate passed the bipartisan legislation that would be backed by President Joe Biden, in order to suspend the government’s $31;4 trillion debt ceiling, in which case, it would avoid the first-ever default scenario.

Credit is very important to maintain.

If you don’t have a good credit, the likelihood can occur that your credit score can go down. This could present a negative trickle-down effect that could definitely affect your overall standings with the bank. The United States themselves didn’t quite ask for it. They weren’t really prepared to give so many hand-outs to the masses. Credit scores matter a great deal.

Here’s hoping that Americans like us can figure out how to raise the debt ceiling entirely so that our future generations won’t have an overbearing amount to deal with in future ages to come. Could credit scores be any more lower? It would be quite convenient given that the state of the world is to cut back on losses. The most practical solution for the U.S.A. surely.

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