Fitch warns US on possible downgrade

Fitch warns US on possible downgrade

Global credit rating provider, Fitch Ratings has warned of a possible cut to the U.S. triple-A sovereign credit rating later this year.

The credit rating provider said if the ongoing government shutdown leads to it hitting its debt ceiling and hampering budget setting.

“If this shutdown continues to March 1 and the debt ceiling becomes a problem several months later, we may need to start thinking about the policy framework, the inability to pass a budget… and whether all of that is consistent with triple-A,” Fitch’s global head of sovereign ratings James McCormack said on Wednesday in London.

“From a rating point of view it is the debt ceiling that is problematic,” McCormack added.

A shutdown of about a quarter of the U.S. government entered its 19th day on Wednesday, with lawmakers and the White House divided over Republican President Donald Trump’s demand for money for a border wall.