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Scope Ratings places US credit ratings under review for downgrade

2023-05-06T00:44:04Z

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FILE PHOTO: The dome of the U.S. Capitol is seen in Washington, U.S., April 17, 2023. REUTERS/Amanda Andrade-Rhoades

(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.

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