Risk of US downgrade still on the cards despite debt deal

WHILE a US default on its debt has been averted, the possibility of another credit rating downgrade remains, as 11th-hour debt ceiling negotiations have become an almost regular feature in recent US history.

The US Senate, last Thursday passed bipartisan legislation backed by President Joe Biden that lifts the government’s US$31.4 trillion (RM144 trillion) debt ceiling, following months of bickering between Democrats and Republicans.