Business World

Saturday 27 May 2017

Fitch warns it will downgrade sovereign ratings if payments not made in August

FITCH Ratings has said it believed a debt-limit agreement would be reached, but warned it would downgrade US sovereign ratings to "restricted default" if the government fails to make payments due in August, when the Treasury has warned it will run out of manoeuvres to pay the government's bills.

If there is a masterplan by the US Treasury on how to handle a technical default, St Louis Fed chief James Bullard is not keyed into it -- yet.

"It's not up to us, it's up to the Treasury," he said, adding that while his bank takes the lead in transactions with the Treasury, it does not set policy.

"I don't have any input, involvement in that policy, and it's up to those guys to have that contingency plan laid out," he said.

Irish Independent

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