2023 US debt ceiling standoff may trigger another sovereign credit rating downgrade, similar to 2011 crisis.
TD Securities' head of US rates strategy Gennadiy Goldberg warns that a potential debt ceiling standoff in the US next year could be one of the worst since the 2011 crisis, possibly triggering another sovereign credit rating downgrade. The US debt ceiling is currently suspended until Jan 1, 2025, but rising deficit forecasts have raised concerns over debt sustainability. In 2011, S&P downgraded the US credit rating for the first time in history amid a similar debt ceiling crisis.
June 21, 2024
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