Bank of America Merrill Lynch is forecasting that the United States will likely lose its triple-A credit rating from another major rating agency by the end of this year due to concerns over the deficit, reports CNBC.
A failure by congress to agree on a long-term plan to cut the U.S. deficit would most likely trigger the downgrade.The second downgrade would come either from Moody's or Fitch, and would follow a ratings downgrade by Standard & Poor's in August.
"The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan" to cut the deficit, Merrill's North American economist, Ethan Harris, wrote in a report.
"Hence, we expect at least one credit downgrade in late November or early December when the super committee crashes," he added.
