{"id":36335,"date":"2023-05-06T01:34:50","date_gmt":"2023-05-06T01:34:50","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/scope-ratings-places-us\/"},"modified":"2023-05-06T01:56:17","modified_gmt":"2023-05-06T01:56:17","slug":"scope-ratings-places-us","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/scope-ratings-places-us\/","title":{"rendered":"Scope Ratings places US credit ratings under review for possible downgrade"},"content":{"rendered":"

(Reuters) -Scope Ratings on Friday placed the United States of America’s AA long-term issuer and senior unsecured debt ratings in local and foreign currency under review for a possible downgrade due to longer run risks associated with the misuse of the debt ceiling instrument.<\/p>\n

Scope, which is seen as the leading European credit rating agency, said that recurrent debt-ceiling crises have resulted in phases of debt repayment distress for the U.S government, adding that the government is dependent on last-minute congressional action to ensure repayment of its debt in full and on time.<\/p>\n

A rise in political polarisation, divided government since November 2022 congressional elections and more elevated federal deficits over the forthcoming years are the other reasons Scope cited for the ratings review.<\/p>\n

The U.S. government hit its $31.4 trillion borrowing limit in January, amid a standoff between the Republican-controlled House of Representatives and President Joe Biden’s Democrats.<\/p>\n

The United States could run out of money to pay its bills as soon as June 1 if Congress does not raise the debt ceiling, according to Treasury Secretary Janet Yellen.<\/p>\n

Last week, the Republican-led U.S. House of Representatives passed a bill that pairs $4.8 trillion of spending cuts with an increase in the ceiling. But Biden and his fellow Democrats insist Congress should raise the cap without conditions.<\/p>\n

Scope also placed United States’ S-1+ short-term issuer ratings in local and foreign currency under review for downgrade.<\/p>\n

Rating agencies Moody’s and Fitch both have a triple-A rating for the United States – the highest credit quality status they can assign to a borrower. <\/p>\n

S&P Global’s sovereign rating for the United States is ‘AA+’, the second highest rating by the agency. In its published report from March last, S&P expected Congress to continue to raise or suspend the debt ceiling, despite “political brinkmanship” between the executive and legislative branches of government.<\/p>\n

Scope Ratings has been in talks with the European Central Bank to become one of its recognized agencies, joining Standard and Poor’s, Moody’s, Fitch and DBRS.\u00a0<\/p>\n

(Reporting by Jose Joseph in Bengaluru; Editing by Sandra Maler and Kim Coghill)<\/p>\n

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(Reuters) -Scope Ratings on Friday placed the United States of America’s AA long-term issuer and senior unsecured debt ratings in local and foreign currency under review for a possible downgrade due to longer run risks associated with the misuse of the debt ceiling instrument. Scope, which is seen as the leading European credit rating agency, […]<\/p>\n","protected":false},"author":8,"featured_media":36336,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1214],"tags":[],"class_list":["post-36335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-domestic"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportDomesticNews\/tagreuters.com2023binary_LYNXMPEJ4500A-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/36335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=36335"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/36335\/revisions"}],"predecessor-version":[{"id":36337,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/36335\/revisions\/36337"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/36336"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=36335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=36335"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=36335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}