China’s largest rating agency CCXI downgraded the sovereign credit rating of the United States in view of the situation related to the US public debt ceiling.
“China Chengxin International Credit Rating Co (CCXI) downgraded the United States’ sovereign credit rating from AAA to AA+ on May 25, 2023 Beijing time, and placed the rating on review list with possible downgrade,” the agency said in a WeChat social network post.
The agency said that the escalating contradictions between the two parties (Republicans and Democrats) in the United States complicate the horizon of resolving the debt ceiling crisis.
She pointed out that due to the ongoing banking crisis in the country, the US federal system is facing difficulties in choosing its policy path, which exacerbates economic instability.
Earlier this week, Fitch Ratings said it had put the United States’ AAA credit rating on review for a possible downgrade, amid concern that Washington could default.
Earlier, the US Treasury warned in letters to Congress that by June 1, 2023, the US might be unable to meet its obligations in full if lawmakers did not authorize an increase in borrowing limits by that date.
The current US debt ceiling is $31.4 trillion, and it was exceeded last January, when the US Treasury said it would take “extraordinary measures” to avoid default:
Congress usually increases the borrowing cap almost automatically, but this time Republicans are demanding several trillion dollars in budget spending cuts. The Republican bill passed the House of Representatives.
This article was originally published by RT.