Bill Gross, founder and co-chief investment officer of bond giant PIMCO, told CNBC on Tuesday that the U.S. could be headed toward a credit rating downgrade if it does not tackle its deficit.
Gross cited a U.S. structural deficit figure between six and eight percent greater than any other country besides Japan and the United Kingdom, and added "until we address that structural deficit then yes, we're headed to AA territory."
The U.S. is currently rated AA plus by Standard & Poor's and AAA by Moody's and Fitch.
While Gross currently gives the U.S. a personal credit rating of AA plus, he warned that one needs to be "very conscious" of the "fiscal cliff" near the end of the year.
