(WaPo) — The ratings agency Standard & Poor’s warned Thursday that there is a 50 percent chance that it will downgrade the U.S. government’s credit rating within three months because of the stalemate over raising the debt limit.
It placed the U.S. on “CreditWatch with negative implications,” according to a statement.
The action “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 statement said. “The political debate about the U.S.’ fiscal stance and the related issue of the U.S. government debt ceiling has, in our view, only become more entangled.”
This follows a warning from another large credit ratings agency, Moody’s Investors Service, Wednesday. Moody’s put the U.S. government’s credit rating on review for a possible downgrade and said that even a brief failure of the government to pay its bills would mean that the United States’s current credit rating “would likely no longer be appropriate.”