U.S. AAA Credit Rating on Negative Watch
Wall Street Breakfast
Seeking Alpha
4.1 • 1K Ratings
🗓️ 25 May 2023
⏱️ 7 minutes
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Transcript
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| 0:00.0 | Welcome to Seeking Alpha's Wall Street breakfast, your daily source of market news and analysis. |
| 0:05.2 | Good morning. Today is Thursday, May 25th, and I'm your host, Kim Kahn. |
| 0:09.7 | Our top stories today. Fitch puts the U.S. AAA rating on negative watch amid debt ceiling standoff. |
| 0:16.5 | Invidia set to store on strong results. |
| 0:19.2 | Fed minutes show members split on more hikes. |
| 0:21.8 | Leading today's news, the United States is in danger of |
| 0:24.8 | losing Fitch ratings top sovereign debt status due to increased political |
| 0:29.0 | partisanship that is hindering reaching a resolution to raise or suspend the debt limit. |
| 0:34.3 | Fitch is reviewing the US for a potential downgrade on its long-term foreign currency |
| 0:38.4 | issuer default rating. The AAA top rating is now on ratings watch negative. The. lost its top rating in S&P in 2011 as the government approached a |
| 0:48.3 | default in a similar standoff. |
| 0:50.3 | S&P has not restored the U.S. to its highest rating. |
| 0:53.0 | Moody still has a top rating on the U.S. debt ratings are important because lenders-based interest rates |
| 0:58.4 | on a borrower's creditworthiness. |
| 1:00.5 | Fitch says it still expects a resolution to the debt limit before the X-State. |
| 1:04.0 | That's when the US Treasury exhaust its ability to pay its obligations. |
| 1:07.5 | However, we believe risks have risen that the debt limit will not be raised or suspended before the ex-state and consequently that the government |
| 1:14.2 | could begin to miss payments on some of its obligations, it added. |
| 1:18.4 | One caveat here, neither Fitch nor anyone else knows when the precise X-State is. |
| 1:23.2 | Treasury Secretary Janet Yellen has said that the X-State is likely on June 1st, but is not confirmed. |
| 1:29.4 | On debt limit negotiations, no form progress was announced after talks Wednesday, but House Speaker Kevin McCarthy said he believes that they can get to yes on a debt limit deal. |
| 1:39.0 | He also insisted that the U.S. won't default. |
... |
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