Tuesday, June 21, 2011

Fitch Warns of Greek, US Debt Default

Fitch Rating said today that a “re-profiling” of Greek debt where investors willingly allow Greece to delay payment on maturing securities would be seen as a default by the ratings agency. This action would further reduce Greece’s credit rating as a result.

Fitch also warned that unless Congress raises the federal government’s borrowing limit by August 2nd, the government will be forced to default on an August 15th coupon payment and Fitch would place the U.S. on watch. Fitch did note however, that it expected the debt ceiling would be raised in time to avoid defaulting.

Source: Reuters

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