The stalled progress in the Washington budget battle may be rattling markets but the gridlock among policymakers will not move the rating agencies to downgrade the United States – yet.
The U.S. credit rating is far from safe. All three major agencies have negative outlooks on the United States, which suffered its first downgrade in history last year when Standard & Poor’s stripped it of its triple-A rating.
But the fiscal cliff is only one event in a series of issues that will see ratings agencies looming over Washington for months.
Investors sold off riskier assets such as stocks on Friday and scooped up safe-havens such as the dollar and U.S. Treasuries after Republican Representative John Boehner failed to find enough support from his own party to push a measure raising taxes on millionaires through the House of Representatives.