Debt ceiling

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Related to Debt Ceilings: national debt ceiling

Debt ceiling

Debt Ceiling

The maximum amount that a government can borrow. The term especially applies to municipalities; rising above the debt ceiling may trigger a reduction it a municipality's credit rating. Cities and other local governments that are near the debt limit may issue participation certificates--a right to the receivables for a certain project--instead of direct debt. The United States also has a national debt ceiling, but Congress simply raises it every time the national debt approaches the ceiling.
References in periodicals archive ?
hits the debt ceiling, it would be precluded from borrowing any more funds.
NYSE: C) and Bank of America Corporation (NYSE: BAC) would lose access to markets and investors if the country touches its debt ceiling.
The entire debt ceiling episode is nothing but a political play.
It is almost certain that Congress will read the warning and raise the debt ceiling prior to knocking it.