Fitch affirms AAA US debt rating...

[DCBob]

from the AP:

WASHINGTON (AP) -- Fitch said Monday that it will keep its rating for long-term U.S. debt at the top AAA level, despite a congressional panel's failure to agree on long-term deficit cuts. But it is lowering its outlook to negative.

The rating agency said it has less confidence in the federal government's ability to take the necessary steps to rein in the deficit.

A special congressional panel failed last week to reach agreement on $1.2 trillion in deficit cuts over the next decade. The impasse triggered automatic cuts of the same amount, which are scheduled to kick in beginning in 2013.

Moody's Investors Services and Standard & Poor's also left their ratings unchanged last week. But Moody's and S&P warned that they could lower their ratings if Congress backed off the automatic cuts.

more: http://finance.yahoo.com/news/fitch-keeps-aaa-us-credit-215217302.html

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This is yet another reason why the automatic cuts will likely stick.

[elleng]

1. Fitch Warns of U.S. Downgrade if No Budget Deal in 2013,

another way of putting it.

'Fitch Ratings gave the United States until 2013 to come up with a "credible plan" to tackle its ballooning budget deficit before it downgrades the country's coveted AAA rating.

The ratings agency said on Monday it revised to negative from stable the outlook on the U.S. credit rating after a special congressional committee failed last week to agree on at least $1.2 trillion (774 billion pounds) in deficit-reduction measures.

"The negative outlook reflects Fitch's declining confidence that timely fiscal measures necessary to place U.S. public finances on a sustainable path and secure the U.S. AAA sovereign rating will be forthcoming," the ratings agency said in a statement.'

http://www.nytimes.com/reuters/2011/11/28/business/business-us-usa-ratings-fitch.html?hp

[DCBob]

2. I wonder if the automatic trigger cuts remain intact, that will be enough to keep our AAA rating.

I think it will.