(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.
The review for ratings downgrade reflects the longer-run risk associated with misuse of the debt-ceiling instrument, Scope said adding that the U.S. government faced elevated risks during recurrent debt-ceiling crises.
“Recurrent debt-ceiling crises have resulted in phases of debt repayment distress for the federal government and dependence on last-minute congressional action to ensure repayment of the United States’ debt in full and on time”, Scope said in a statement.
Scope also placed United States’ S-1+ short-term issuer ratings in local and foreign currency under review for downgrade.
(Reporting by Jose Joseph in Bengaluru; Editing by Sandra Maler)
