10/15/2013 10:13:13 PM Morgan Little
Fitch puts U.S. credit rating on downgrade watchSo why did Fitch do it? In their own words:"Although the Treasury would still have limited capacity to make payments after (Thursday) it would be exposed to volatile revenue and expenditure flows," Fitch said, noting Treasury officials have said they would run out of borrowing authority and be left with $30 billion cash on hand and incoming revenues to pay bills."The Treasury may be unable to prioritize debt service, and it is unclear whether it even has the legal authority to do so," the company said in a report. "The U.S. risks being forced to incur widespread delays of payments to suppliers and employees, as well as Social Security payments to citizens -- all of which would damage the perception of U.S. sovereign creditworthiness and the economy."Read more over at Money & Co.