Debt-limit showdown splits credit raters on US downgrade trigger

Moody’s Investors Service, S&P Global Ratings and Fitch Ratings are all game-planning ahead of the time later this year when the Treasury Department will run out of cash if lawmakers don’t boost the ceiling. — Reuters

NEW YORK: The three most-cited debt-rating firms are all expecting Congress ultimately to raise the federal debt ceiling – despite a deep partisan divide – though they’re split on the implications of any move to prioritise payments on Treasuries in the event the debate goes into extra time.

Moody’s Investors Service, S&P Global Ratings and Fitch Ratings are all game-planning ahead of the time later this year when the Treasury Department will run out of cash if lawmakers don’t boost the ceiling.