NEW YORK (Reuters) – Credit rating agency Fitch said on Wednesday the ousting of U.S. House Speaker Kevin McCarthy meant a government shutdown later this year was possible, although it would not affect its U.S. sovereign rating.
“Given the fact that the House speaker was ousted right after the continuing resolution was agreed, we expect political brinkmanship around government funding negotiations will remain tense and a shutdown later this year can’t be ruled out,” Richard Francis, a senior director at Fitch, said in a podcast.
A shutdown would not impact Fitch’s rating as the country’s “deterioration in governance” was already captured in Fitch’s downgrade of the U.S. in August, Francis said.
(Reporting by Davide Barbuscia)
