Scope Ratings warns of unsustainable U.S. debt and maintains AA- score
Scope Ratings has affirmed the United States credit score at AA- while warning that rising interest costs and election risks create an unsustainable medium-term fiscal trajectory.
FTMQ News, written by our newsroom
Scope Ratings maintained the United States sovereign credit score at AA- on Friday, Fortune reported. The Europe-based credit ratings agency warned in a new report that rising interest costs and election risks surrounding the debt ceiling are adding pressure to the national debt. Scope Ratings stated that the current trajectory points to an unsustainable medium-term fiscal path that leaves the sovereign exposed to shifts in market sentiment and financing conditions. [1]
According to Fortune, recent jumps in Treasury yields have highlighted how vulnerable the United States debt outlook has become to the bond market. Scope Ratings noted that its credit rating of AA- is three notches below the top possible grade. This rating is two steps below the AA+ ratings awarded to the United States by rival credit rating agencies Moody's, Fitch, and S&P Global Ratings. [1]
Fortune reported that Scope Ratings identified several economic advantages that continue to support the credit standing of the United States. The ratings agency listed a strong economy, the role of the U.S. dollar as the reserve currency of the world, and strong institutions such as the Federal Reserve among the key factors in favor of the country. [1]
In short
- Scope Ratings maintained the United States sovereign credit rating at AA-.
- The AA- rating from Scope Ratings is two steps below grades from Moody's, Fitch, and S&P Global Ratings.
- Scope Ratings warned that the fiscal trajectory of the United States is unsustainable in the medium term.
- Scope Ratings cited a strong economy and the role of the Federal Reserve as factors in favor of the United States.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]U.S. debt is increasingly at the mercy of the market as interest costs surge while elections add more risk to the debt ceiling, ratings agency warnsFortune, 2h ago (the report this story comes from)
Our newsroom writes these reports with the help of software, from the 1 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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