Fitch warns: The US may lose its AAA rating

USA is dangerously close to losing their AAA rating later this year, after a warning from the rating agency Fitch. The warning comes alongside the current partial closure of the government, which may soon deter the possibility of a next budget vote.

The pathetic situation between President Donald Trump and Congress enters his 19th day. Politicians are highly divided around the president's desire to finance the US-Mexico border.

"I think people are only watching the CBO (Congressional Budged Office) budget, if they take the time to look at the levels of our debt they will see it grows, which will be a huge problem over the next ten years. - says James McCormack, chief rating officer at Fitch.

"There has to be some fiscal change to avoid a steady rise in the deficit, because money is currently being borrowed to pay interest on debt, but we have only a fiscal deterioration for the time being." - adds McCormack. "If the government's suspension continues until March 1 and the debt ceiling becomes a problem a few months later, we may have to assume that the government will not have the opportunity to adopt a new budget that will question the compatibility with three times A rating. "

In June 2018, the rating agency S & P Global confirmed the US credit rating by AAA, identifying it as 'stable'.

In response to the current situation, S & P said their assessment remained unchanged.

Moody did not respond to the official request from CNBC, but earlier in December, the rating agency said the partial closure of the government would not have a negative effect on the US credit profile.

Stocks: CNBC

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