ICYMI: Fitch Ratings Warns that Political Brinkmanship over the Debt Limit Would Harm Credit Rating

Fitch Ratings confirmed what a growing list of private sector leaders, state and local officials, and community organizations have warned of: the dire consequences for the U.S. credit rating should the government fail to raise the debt ceiling.

In a memo released today, the credit rating company writes: "If this were not done in a timely manner, political brinkmanship and reduced financing flexibility could increase the risk of a U.S. sovereign default."

Should a missed payment occur, "Fitch would downgrade the U.S. sovereign IDR to 'Restricted Default' (RD) until it judged the default event was cured," the memo adds.

Read the full post here.