The credit rating agency said in a statement Thursday it was placing the United States’ sovereign rating on “CreditWatch with negative implications.”
“There is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days,” the agency said.
S&P warns of downgrade if no debt deal reached
(Reuters) – Ratings agency Standard & Poor’s has warned there is a one-in-two chance it could cut the United States’ prized triple-A rating if a deal on raising the government’s debt ceiling is not agreed soon.
Putting the U.S. on negative watch, S&P warned that it could cut the rating as soon as this month if talks between the White House and Republicans remain stalemated. Any cut would be by one or more notches, it added.
“Today’s CreditWatch placement signals our view that, owing to the dynamics of the political debate on the debt ceiling, there is at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days,” the agency said in a statement.