RBC predicts another agency will strip America of its top credit rating
RBC Capital Markets is calling it: the U.S. is going to lose its triple-A rating from another rating agency. And this one may matter more because it would affect how investors have to look at the government's debt.
"In the absence of a grand bargain in the next two months, it is likely that the U.S. is downgraded," analysts led by Tom Porcelli, RBC's chief U.S. economist, wrote in a note Thursday.
"This downgrade is likely to have a more significant market impact than the S&P downgrade" in 2011, he said.
Meanwhile, the U.S. seems to be inching closer to default, according to a
Washington Post report:
The U.S. government may default on its debt as soon as Feb. 15, half a month earlier than widely expected, according to a new analysis adding urgency to the debate over how to raise the federal debt ceiling.
The analysis, by the Bipartisan Policy Center, says that the government will be unable to pay all its bills starting sometime between Feb. 15 and March 1. Read Article
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