Standard & Poor’s Warns Lawmakers That Prioritizing Payments Will Lead To Credit Downgrade

Reuters reports: The credit rating agency Standard & Poor’s “has warned lawmakers privately that it would downgrade the country’s debt if the Treasury Department is forced to prioritize payments because Congress does not raise the debt limit.” S&P;’s warning “undercuts an argument made by some Republicans that the country’s credit rating would not be affected as long as the Treasury Department made debt service a priority over other obligations.”