Fitch threatens to downgrade US over debt
The counterfeit bonds were designed to appear as if they had been issued by the US Federal Reserve (pictured) in 1934, and were worth an amount equivalent to almost half of the US’s public debt.
America's debt debate may cost the country its top credit rating, prominent lender Fitch Ratings warned today, according to the Associated Press.
The US reached its debt limit of $16.394 trillion last month, but enacted emergency fiscal measures to last through the end of February. However, the leading world economy is set to default on its obligations unless lawmakers increase the debt limit by March 1.
Fitch managing director David Riley told reporters in London today that if political infighting prevents America from resolving the crisis, "we will place the US rating under review," said AP.
The lender said a "failure to raise the debt ceiling in a timely manner will prompt a formal review of the US sovereign ratings," posing a threat to the nation's premium AAA level, according to Agence-France Press.
This would be America's second downgrade in as many years, Standard & Poor's having lowered the US rating over the debt issue back in 2011, said AFP.
That downgrade was the first in US history, said AP.
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